The sources noted that Apple’s talks to license programming from TV networks such as those owned by CBS and 21st Century Fox were progressing slowly, leading to the delay.
While the live TV aspect will have to wait, Apple is still expected to launch a next generation of its Apple TV next month, alongside the iPhone 6s. The company still plans however, to unveil a new, more powerful version of its Apple TV set-top box. The reports said Apple is working with major programming conglomerates, asking them to get their network affiliates on board with the program.
The sources were also quoted as saying that in addition to the glacial pace of licensing negotiations, Apple has privately conceded it does not, at this point, have enough networking capacity to give customers a top-notch streaming experience.
Reports indicate that negotiations with content providers have gone less well than hoped, causing the delay. These bundles, according to the Post, “give users a good sampling of networks at a lower price”, a much better deal for the average consumer who craves simplicity and freedom of choice when shopping for cable bundles. Apple, it’s said, believes it should be paying less for a more streamlined set of channels, while networks want more from the unproven entrant into the TV market.
However, lesser-than-expected content deals have forced the company to postpone its plans to 2016. (NASDAQ:AAPL) per year. However, a TV service would help the tech firm to be called as a one-stop shop for entertainment, and could eventually become larger.
Apple wants to offer its TV service for $40 a month.
FBR Capital Markets analyst, Daniel Ives, said that a TV service has the potential to generate $2 – $3 billion of revenue by the year 2018.
Since the lead-up to this year’s WWDC, it has seemed that Apple’s upcoming live TV streaming service is practically around the corner. Back in March, the Wall Street Journal reported that Apple’s service would include networks like ABC, CBS, Fox, and various subsidiary channels like ESPN and FX.
