Apple’s TV streaming platform faces even more delays, as the company struggles to win over cable executives to new contracts. Cupertino is apparently having a hard time keeping its 40 per cent margin, which it has held onto for all types of content previously.
CBS CEO Les Moonves said before the WWDC 2015 conference that Apple and CBS were still discussing contracts and pricing for content. CBS might not be the only network giving Apple a tough time, with NBC Universal and Disney both having trouble with Apple’s agreements.
At the heart of the disagreements is the new features Apple will present on its TV service. Curation is a massive part, similar to Apple Music, and some networks are not happy with Apple having more control over how people view live TV.
Apple is known for being a great negotiator, but it is harder to strike a deal with an industry that is doing well. Cable, despite the falling viewers, is still pumping out some of its highest ratings with shows like The Big Bang Theory, NFL Sunday Night Football and The Walking Dead.
It might need to start changing the terms and allowing cable networks more luxuries for joining the TV streaming platform. The problem is once Apple opens the floodgates to one network, all of them might want the deal.
The TV streaming service will compete with Sling TV and PlayStation Vue, offering a wide range of live and on-demand content. Netflix will remain unaffected, as it continues to pump out its on-demand “binge” content to over 70 million customers.