Apple has been out talking to TV networks in recent weeks, trying to round up support for a subscription service which would deliver unlimited TV for only $30 monthly.
Apple and TV are two words that just don’t seem to go together well. With the knowledge well in hand that their previous television integration just didn’t work out, Apple is looking to start something new. The service Apple is proposing is just what consumers have been wanting for a long time.
The plan, according to Apple, is to offer television content through iTunes at a subscription rate, rather than making people pay per download. The structure would seem to be similar to that of the current Netflix arrangement, but the service would require iTunes. This would present a bit of a problem from the convenience side, especially if the files aren’t easily streamable or require a set-top to play on a TV.
The other question from a consumer standpoint is that of fidelity. $30 for unlimited 1080p downloads/streams of television show would be well worth it if enough broadcasters were on board. $30 for unlimited standard definition content on the other hand doesn’t look quite as nice.
Networks are hesitant to jump on board either way, as they see that this could be seen as a move away from cable services, which would certainly upset relationships with companies like Comcast. Additionally, the shows would be presented on iTunes in an ad free format, meaning a complete zero in advertising revenue.
Source: All Things Digital