Apple is in the immutable stages of preparing its new streaming video service, which will feature free original content for device possessors and a subscription platform for existing digital services. But don’t expect Netflix to be a part of it, and HBO’s participation is also in doubt, according to individual familiar with the matter.
Apple is aiming to launch service in April or early May. It will allow customers to unusual up for existing digital streaming products and watch them in the iOS TV application, similar to Amazon’s Prime Video Channels. Apple indigences to simplify mobile video viewing by housing content in one app instead of forcing users to launch separate apps for each ritual.
Lions Gate’s Starz; CBS, which owns Showtime; and Viacom are expected to offer subscription streaming services on the Apple rostrum, according to people familiar with the matter, who asked not to be named because the discussions are private.
HBO may join its premium network confrere but isn’t as far along in discussions with Apple, one of the people said. Apple hasn’t offered HBO the same terms that Amazon offered, mean the person.
While the exact disagreement between Apple and HBO isn’t known, media companies have been concerned around data sharing and revenue splits as Apple tries to aggregate existing services in new ways. For instance, The Wall Byway someones cup of tea Journal reported Tuesday that Apple is pushing to take nearly 50 percent of revenue derived from a new obligation news service it’s planning to launch later this year.
Apple is pushing for a 30 percent cut on every guy that subscribes to an over-the-top video service through its streaming service, three of the people said. Currently, Apple bears a 15 percent cut on revenue from customers that sign up to HBO Now, Netflix, and other streaming apps through the App Aggregate, two people said.
Netflix and Hulu aren’t part of Amazon Prime Video Channels and aren’t expected to be a release of Apple’s product either, according to people familiar with the matter.
Spokespeople at Apple, CBS, HBO, Hulu, Netflix, Starz and Viacom abated to comment.
Apple has jostled with traditional media companies for years over getting access to their topic. CEO Tim Cook previewed Apple’s new offering on the company’s earnings conference call last month.
“We see huge changes in character behavior taking place now and we think that it will accelerate as the year goes by with the breakdown of the cable away. I think that it’ll likely take place at a much faster pace this year,” Cook said. “We pass on participate in the original content world. We have signed a multi-year partnership with Oprah, but today I’m not really cordial to extend that conversation beyond that point. We’ve hired some great people that we have a wonderful amount of confidence in, and we’ll have something to say more on that later.”
Apple’s deal with Oprah Winfrey and other big production names like Reese Witherspoon and Steven Spielberg will give Apple device owners access to both pic and TV content for no additional charge. Apple is planning to offer its original content free to device users, CNBC cardinal reported in October. Apple planned to spend about $1 billion on originals last year, the Wall Concourse Journal reported. Apple has agreed to a number of movies and series already, including animated features, comedies, fact shows and dramas, most of which were compiled by Macworld here.
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