Apple Inc. (NASDAQ:AAPL) is currently working to bring its own live TV service in the market. The company is making deals with TV show providers to feature their content on the coveted service. However, it is reported that Apple Inc.. (NASDAQ:AAPL) wants TV programmers to stream their own content.
The decision seems to have followed the recent reluctance of broadcast network providers such as Comcast and Verizon to streaming service provider Netflix. Netflix is a major streaming service that caters to consumer media needs such as TV shows, movies and on demand broadcasting. Netflix has complained that it had to sign commercial agreements with these broadcast networks to get faster delivery of its streams. Apple Inc.. (NASDAQ:AAPL) seems to avoid this conflict by asking TV programmers to stream their own content.
Eddy Cue, executive of Apple Inc. (NASDAQ:AAPL), is heading media efforts of the company. He is involved in the negotiations for the new streaming service of the company. According to sources, Cue admitted that the company feels it should concentrate more on creating consumer hardware and software, the thing which it is good at, than to put efforts on streaming infrastructure. Although the cost of streaming is not a major issue, the company has decided to leave the streaming task to the pros.
Tim Morgan, from the streaming service Net2TV, said that it costs only 5 cents per hour to stream a TV show. TV networks such as Fox, CBS and Disney stream their own content via Apple apps. Thus it is no surprise that Apple Inc. (NASDAQ:AAPL) wants to work with these companies and expects them to handle the responsibility and cost of streaming infrastructure that is required for the web service.
Apple Inc.’s (NASDAQ:AAPL) new service might become its biggest hit. But some believe that the company’s decision to allow TV programmers to stream is just a cost-conscious move. Perhaps it is Apple’s way to smartly avoid potential conflict with broadband service providers like Comcast. The company has not commented on the issue yet.
