Apple Trying to Entice Cable Channels with Half Subscription Tax
David Curry | | Apr 14, 2015 07:52 AM EDT |
(Photo : Reuters) Apple is offering 15 percent subscription tax for internet services on Apple TV.
Apple is trying to entice internet TV services to launch on Apple TV through a 15 percent subscription tax, 50 percent lower than the traditional 30 percent App Store model that's been in place since 2011 for subscription-based services.
Services like Netflix, Hulu Plus and HBO Now are all receiving this treatment, showing Apple is willing to drop the subscription price for high profile partners working on Apple TV.
Like Us on Facebook
The goal is to try and make Apple TV more enticing for traditional cable channels or internet TV services. The current model on cable is a 50/50 share between the cable service and the channels, quite a hefty deal to make for a programming network.
This new 15 percent model sounds excellent in retrospect and considering Apple wants channels to host their own streams on top of Apple's own internet TV service -- which is set to launch in June this year -- it might be a ploy to get all channels paying some type of fee.
We still don't know how Apple's internet TV service will work but if it goes full al-a-carte, it could be huge for Apple's potential revenue. Al-a-carte would mean a programming network like Disney might provide a bundle of eight channels available for $20 per month while another service like HBO will be available for $15 per month.
This system hasn't been explored by any programming service so far but if anyone would be willing to change the entire TV industry, it would be Apple.
There's a rumor Apple will offer a basic bundle for $30 to $40 per month coming with channels like ESPN and AMC. It lost a partnership with NBC Universal, owners of USA Network and other high profile channels, when it decided to not work with Comcast on the TV service.
Apple will launch the internet TV service at WWDC 2015 alongside the relaunch of Beats Music. This is the most action packed WWDC when it comes to services, with Apple taking on two big giants in Netflix and Spotify this year.
We've never really been as excited for Apple's services as we are for hardware, but this year may be different. Apple is in talks with dozens of artists for Beats Music and dozens more for its internet TV service, and might be willing to sink a few billion to get these services on the road.
TagsApple TV, Internet TV, netflix, Hulu Plus, HBO Now
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?