Stephen Withers
Wednesday, 23 December 2009 03:34
Opinion and Analysis
Page 1 of 2
Rumours are flying that CBS and Disney have shown some interest in an Apple proposal to launch an Internet-based pay TV service.
According to reports from the US, Apple has proposed a subscription TV service that will provide Internet access to a selection of shows from the networks.
The plan appears to involve on-demand streaming as opposed to conventional IPTV services that simply use an IP network for distribution in place of traditional cable or satellite networks.
A monthly subscription of $US30 has been floated. Apple currently charges $US2.99 for individual episodes of TV shows through the iTunes Store ($US1.99 for short programs), though that's a 'pay to keep' model.
Such a development would occur against the background of declining broadcast viewing and a deal designed to give cable company Comcast control of NBC Universal by 3Q10.
CBS and Disney have reportedly shown some interest, while the parent companies of Fox, MTV and CNN are, it seems, disinclined to get behind Apple's scheme.
Among the issues that could affect the viability of the plan are the ability to attract enough content to make the service attractive to potential subscribers, the continuing availability of affordable unlimited Internet plans, and the existence of net neutrality policies.
How might these issues play out? Please turn to
page 2.