Apple has already reportedly been running into resistance as it pushes forward with plans to launch a live TV streaming service. Now it looks like those hurdles will be enough to put at least a temporary hold on the product development.
According to Bloomberg, Apple will for now scrap the TV service idea and instead focus on helping media companies with their own direct-to-consumer efforts.
As the report points out, CBS CEO Les Moonves said Tuesday that Apple will hold off on the TV service plans, though he expects Apple will at some point offer a bundle of TV channels.
The primary impasse for Apple’s aspirations is money. Specifically, the $30 or $40 packages Apple wants to offer don’t align with the compensation programmers want for their content.
Apple had reportedly focused on offering local broadcast channels at a lower price point in order to differentiate from current live streaming TV services like Dish’s Sling TV and Sony’s Playstation Vue. Sling TV $20-per-month service does not offer broadcast networks while Playstation Vue does, albeit at a higher price than what Apple is eyeing.
In order to hit that lower price point, Apple has reportedly been offering local network affiliates a cut of the advertising revenue generated by the service.
The shift in attention for Apple comes shortly after its fully revamped Apple TV became available. One of the biggest changes to the latest generation of Apple’s streaming box is the addition of an App Store, which will allow consumers to add whatever apps they want instead of relying on the apps Apple deemed fit to be featured.