• Report Reveals that Apple is Negotiating Directly with Providers for New TV Product

    In a recent bid to break a stalemate in its attempt to release a full-fledged television set, Apple has supposed brought ESPN, HBO and Viacom to the table and is negotiating directly with content providers rather than cable companies. As the Cupertino California company moves closer to release its rumored television set, Apple is said to have changed its go-to-market strategy, bypassing cable companies that have long balked at Apple’s terms in favor of direct negotiations with content providers.

    The negotiations reportedly center on a new, Apple-branded television set rather than the company’s existing Apple TV product. Apple is said to be willing to enter the market even without a majority of the content providers signing on. It is betting that small amount of high-quality content will drive enough consumer demand for the product that the rest will have little choice but to follow as a result.

    The report suggests that Apple may be willing to go as far as becoming a virtual cable company itself, mirroring rumors leading up to the iPhone launch in 2007 that Apple would form a Mobile Virtual Operator (MVNO), to provide mobile telephony services for its new device. The report notes that Sony, Google and Intel are considering similar options for their own television strategies.

    Apple and Viacom refused to comment specifically on the negotiations while ESPN’s Chris LaPlaca said “there are no formal discussions taking place” and HBO’s Jeff Cusson mentioned they “have no plans to go over the top or to enter these markets in a different way.”

    Reportedly an Apple television set would follow the company’s iOS platform concept with a focus around content apps, moving away from the traditional channel mode. Apple might also offer cross-app search functionality, further abstracting the content from the specific providers. The report continues to link recent Apple acquisition of content aggregator Matcha.tv, revealed earlier this month, as well as Apple’s rumored $280 million offer for PrimeSense, the Israeli firm whose technology is behind Microsoft’s Kinect to Apple’s evolving television strategy.

    We’ll have to see how things turn out in the future though when more concrete information is revealed.

    Source: Quartz
    This article was originally published in forum thread: Report Reveals that Apple is Negotiating Directly with Providers for New TV Product started by Akshay Masand View original post
    Comments 2 Comments
    1. REMED1AL's Avatar
      REMED1AL -
      I get the feeling the Justice Department will be going after Apple for this in a few years for setting a single standard clause across all providers. Despite this clause being nothing more than a protection measure for Apple the JD will call it a monopoly, price fixing or make up an entirely new category to prohibit a competitive company from competing.

      Still, the "cross-app search functionality" is what is needed for me to convert. I want to be able to search movies > comedy > release date and see everything available to me through all possible options. Searching is my #1 reason for not dropping cable already. #2 is lack of compete content/length of time before new content hits. #3 is simple I like the channel option. I listen to Slacker and let it play, skip when unwanted and enjoy. I don't pick every single song and won't pick every single show especially since you'd miss tons of great content simply b/c you didn't know.

      Apple just needs to prove to providers that they can make as much or more from the same content through them as cable networks; which is far from difficult with more access to the media. Apple know "if they build it, they (consumers and providers) will come".
    1. mrmikey05's Avatar
      mrmikey05 -
      It would be so cool to see apple with their own HDTV with ATV built-in. That would be awesome. Like my Vizio, it have SmartTV Apps, it would be nice to have a ATV on an Apple HDTV. Looking forward to it.
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