Traditional television providers are soon to be facing some serious challenge to their mode of operation. Apple is racing into the TV streaming industry, following services like Netflix and Amazon Prime, but confronting the old cable providers for access to network televisions.
Apple TV will reinvent the way that you watch television, and this is just the beginning,” said Apple CEO Tim Cook while announcing the company’s deal for HBO Now.
Apple is currently attempting to bring a package of 25 channels for $30 to $40 per month. The company is trying to reach a deal with network companies to provide the service for Apple device users as early as September. Apple has already struck a deal with HBO to serve HBO NOW, the network’s newest streaming service offering subscriptions independent from a cable subscription. Apple may be able to pull in other networks like ABC, ESPN, and Fox.
The writing was on the wall, and there has been a huge watershed moment over the last year with major networks quickly unbundling from cable companies,” said Brian White, an analyst at Cantor Fitzgerald.
Cable providers have taken hard hits with the continued popularity of online streaming; seen most directly in the decline of stocks that took place Tuesday after news of Apple’s streaming plans hit the market. Online streaming of television has hit the 40 percent mark in U.S. homes, according to Nielsen, and this trend is not likely to ease up, especially with Apple’s entrance into the industry.
Read More – Could Apple Become The Next Comcast? (Washington Post, Cecilia Kang)