Apple Plans Web TV Service in FallIn talks with programmers to offer a
slimmed-down bundle of about 25 channels
Apple is in talks with several broadcasters to offer an online TV service
this fall. WSJ's Shalini Ramachandran explains on The News Hub. Photo: Getty
By
KEACH HAGEY,

SHALINI RAMACHANDRAN and

DAISUKE WAKABAYASHI
Updated March 17, 2015 11:24 a.m. ET
http://www.wsj.com/articles/apple-in-talks-to-launch-online-tv-service-1426555611

Apple <http://quotes.wsj.com/AAPL> Inc.’s lofty plans to build an online
television service are coming into sharper focus.

The technology giant is in talks with programmers to offer a slimmed-down
bundle of TV networks this fall, according to people familiar with the
matter. The service would have about 25 channels, anchored by broadcasters
such as ABC, CBS and Fox and would be available on Apple devices such as
the Apple TV, they said.
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For now, the talks don’t involve NBCUniversal, owner of the NBC broadcast
network and cable channels like USA and Bravo, because of a falling-out
between Apple and NBCUniversal parent company Comcast
<http://quotes.wsj.com/CMCSA> Corp., the people familiar with the matter
said.

Apple and Comcast were in talks as recently as last year
<http://www.wsj.com/articles/apple-in-talks-to-launch-online-tv-service-1426555611>
about
working together on a streaming television platform that would combine
Apple’s expertise in user interfaces with Comcast’s strength in broadband
delivery. Apple came to believe that Comcast was stringing it along while
the cable giant focused on its own X1 Web-enabled set-top box, the people
said. One media executive said it may be difficult for Apple to launch a
service without NBCUniversal channels.

Meanwhile, Apple has been talking to Walt Disney Co., CBS
<http://quotes.wsj.com/CBS>Corp., and 21st Century Fox
<http://quotes.wsj.com/FOXA>Inc., among other media companies. The idea is
to offer consumers a “skinny” bundle with well-known channels like CBS,
ESPN and FX, while leaving out the many smaller networks in the standard
cable TV package. 21st Century Fox and News Corp, owner of The Wall Street
Journal, were until mid-2013 part of the same company.

Some media executives said they believed Apple was aiming to price the
service at about $30 to $40 a month. The company is aiming to announce its
new service in June and launch it in September, according to people
familiar with the matter. The service would work across all devices powered
by Apple’s iOS operating system, including iPhones, iPads and Apple TV
set-top boxes.

Apple has had on-and-off talks with media companies for years in the hopes
of creating a subscription TV service that would be delivered over the
Internet. Many of its proposals were considered radical and failed to bear
fruit. The latest round of talks could run into roadblocks that would throw
off the company’s timeline.

But the company has some momentum. Last week, it signed up as the exclusive
digital launch partner for HBO Now
<http://www.wsj.com/articles/apple-signs-on-as-hbo-video-streaming-partner-1425922629>,
the coming streaming service the Time Warner
<http://quotes.wsj.com/TWX> Inc.premium
cable channel is launching in April. That deal was designed as a kind of
appetizer for the main meal plans to be served later this year, according
to a person familiar with the matter.
ENLARGE

Apple’s TV service would enter the market at a moment of intensifying
competition in Internet TV services. Several companies are looking for ways
to target “cord cutters,” people who don’t want to pay the typical $90
price for a cable TV package with hundreds of channels and who tend to
enjoy online video.

Sling TV
<http://www.wsj.com/articles/dish-network-unveils-web-video-service-1420481845>,
a streaming television package recently launched
<http://www.wsj.com/articles/dish-network-unveils-web-video-service-1420481845>
by Dish Network <http://quotes.wsj.com/DISH> Corp., costs $20 a month but
doesn’t include broadcast networks on its lowest tier. Sony
<http://quotes.wsj.com/SNE>Corp. also is launching a bundle of streaming
channels
<http://www.wsj.com/articles/sony-to-roll-out-internet-tv-service-this-year-1426086001>
soon
that is widely expected to cost more than the figure discussed for Apple’s
service.

The Wall Street Journal reported a year ago that Apple was in talks with
Comcast to team up on a streaming TV service that would use an Apple
set-top box and get special treatment on Comcast’s cable pipes to bypass
congestion on the Web. Apple had discussions since at least mid-2012 with
Time Warner Cable, but those talks came to a standstill when the company
became a takeover target for rival operators. Time Warner Cable struck a
deal—still awaiting regulatory approval—in February 2014 to sell itself to
Comcast.

In the most recent talks, Apple is continuing to propose creating a live TV
streaming service with a vast on-demand library that would be stored in the
“cloud.” It may be hard for Apple to get rights to all the programming it
is asking for, including full seasons of shows. Many media companies have
deals to license such content to outlets like Netflix and Hulu.
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