This week, reports began circulating, claiming that Apple has officially suspended its Internet TV service, though we didn’t have many details at the time. Now, some more information has come to light as just as you would expect, Apple was unable to get networks to agree on pricing, or channel bundles.
The big thing Apple was pushing for this year was a ‘skinny bundle’, which would be a base package of around 12 or so network channels for no more than $30 a month. This seems to have been a particularly tough sell, particularly when it came down to how much each individual channel was worth and what would get cut or added to each package.
This is all coming from a new report from Re/Code, which tends to be pretty accurate when it comes to these things. The report shows that another big issue for Apple was that while networks would claim that they understand that consumers don’t want to pay for channels they don’t watch, each network would insist that their channels were all ‘must haves’.
Re/Code gave Fox as an example, noting that the network was reluctant to sell Fox and Fox News without the FX or Sports channels bundled in. This same trend carried over across multiple networks, which defeated the purpose. The whole point of Apple’s service was to provide cable cutters with a way of getting the channels they want on a more individual basis, without also having to pay for additional channels they don’t necessarily want.
KitGuru Says: Apple’s Internet TV streaming service won’t be coming back in to headlines for a while it seems. Apple may revisit the idea when networks are more willing to co-operate with its terms.