Possible iTunes TV subscription for Disney and CBS

24th December, 2009 by adina
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Apple is going to have two studios subscribed to its iTunes TV plan, before the tablet launch this winter, according to trusty sources. The service has merely been proposed to studios in the past, but it seems that now, both CBS and Disney are considering signing such a subscription. The plan is that some TV shows at least should be available through participating networks in case of a monthly subscription and would include CBS and its sister network CW, ABC and ABC Family, as well as Disney Channel.

Apple would pay the studios per-subscriber rates higher than what is offered by satellite or cable providers, in order to make this deal more attractive. According to the Wall Street Journal, a customer who downloads a freely-broadcast network such as ABC will reach between $2 and $4 monthly, while cable channels usually pay between $1 and $2 for a similar period. According to the original plan, iTunes subscribers are paying about $30 per month, but this might change, as Apple wants to attract TV networks and, consequently, some shows produced by an outside studio might be left outside the subscription.

If these plans prove to be successful, Apple should have the service available sometime in 2010, but this depends on enough studios accepting the deal. For the moment, there is no confirmation of an eventual subscription to iTunes TV. These plans are complimentary but are not essential for the development of the Apple’s tablet, which has a larger screen and would prove ideal for video watching. People who claim to be acquainted with Apple’s plans say that it will launch in March and would be intended to be primarily a media player, as it would be equipped with a 10-inch multi-touch display, a version of the iPhone operating system and would most probably have a 3G data connection.

Studios’ agreements to this plans, if they are real, are not certain, but what is known is that satellite and cable TV providers are heavily fighting against Internet TV firms and have taken severe measures to either tempt customers to come back to their services or to penalize those who are leaving traditional TV. Such measures are streaming-as-a-bonus, like the xfinity TV from Comcast or tiered bandwidth caps and they have lately grown in popularity. Time Warner and Comcast, for example, are not allowing TV networks such as TBS and NBC to participate because they fear that Apple could steal their customers.

Movie and TV studios have always been reticent to agree Apple’s proposals due to music labels being affected by the release of the iTunes Music Store in 2003. Apple’s control of digital music made record labels depend on iTunes and also produced vivid emotion between video producers who were determined to keep open their choices. Many of them accepted to sell ad-free episodes, but would be less likely to agree similar conditions for bulk viewing and they have often opted for ad-supported web streaming.

As Apple’s CEO Steve Jobs is part of the Disney board, he is supposed to help the deal to be concluded and have Disney and ABC subscribing to the deal.

Whether Apple’s subscription plan will be successful or not, it will make a distinct break from the company’s prior attitude, as Apple usually preferred per-item ownership instead of using subscriptions. In the case of TV, things might be slightly different, because TV is has followed traditionally a subscription model and this would be easier to accept by iTunes users than subscription music.


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