It looks like Apple is going to leverage on how they change the mp3 business by trying to tie up with cable tv networks to provide content through iTunes. I think what they are trying to do is making iTunes an entertainment operating system in itself.
Remember,iTunes run on Windows, Mac. making it sell application, music watch video and now video streaming will be like a one stop entertainment operating system.
The proposed service by the maker of iPhones and iPod music players could, in at least some scenarios, offer access to some TV shows from a selection of major U.S. television networks for a monthly fee, according to people familiar with the discussions. Apple is pushing to complete licensing deals and hopes to introduce the service in 2010, some of those people said. It is unclear whether any networks have signed on yet…
If Apple signs up enough networks to launch a viable service—still a very big if—it could ultimately alter the economics of the television business. The service could undermine the big bundles of channels that cable, satellite and telecommunications companies, including Comcast Corp. and DirecTV Inc., have traditionally sold in packages to subscribers.
As it is, the TV network people are taking sides, like all standards war:
- News Corp., Viacom Inc., Time Warner’s Turner Broadcasting and Discovery Communications Inc. appear to be opposed to or leaning away from signing on to Apple’s service.
- CBS is considering offering programs from the CBS and CW networks…Disney is considering including programs from its ABC, Disney Channel and ABC Family networks.
- In at least some versions of the proposal, Apple would pay media companies about $2 to $4 a month per subscriber for a broadcast network like CBS or ABC, and about $1 to $2 a month per subscriber for a basic-cable network.
The plans will likely be more expensive then the rest so its difficult to see families not thinking about it and going for it just because of apple’s brand.
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