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CBS, Disney ready for iTunes TV subscriptions?

updated 10:45 pm EST, Mon December 21, 2009

Subscription iTunes TV, tablet in works

Apple may have two studios lined up for its proposed iTunes TV subscription plan ahead of a winter tablet lanch, sources claim Monday night. Where before the rumored service had merely been proposed to studios, anonymous tips now suggest that CBS and Disney are at least "considering" signing onboard. Under the plan, at least some TV shows across participating networks would be available through a monthly subscription, including CBS and its sibling CW network as well as ABC, ABC Family and the Disney Channel.

To overcome hesitation on the part of studios, Apple would pay them per-subscriber rates higher than usually offered by cable or satellite providers. A customer downloading a freely-broadcast network like ABC would amount to between $2 and $4 each month, according to the Wall Street Journal, while basic cable channels would equate to between $1 and $2 over a similar period. The original plan had iTunes subscribers paying about $30 per month, though this may change as Apple tries to please TV networks; some shows may be left out of any subscription due to their being produced by an outside studio.

If successful in its ambitions, Apple would have the service ready sometime in 2010, though this is contingent on enough studios agreeing to a deal in time. It's unknown if any have actually committed to subscription iTunes TV so far.

Notably, the plans are complimentary to but not absolutely essential for Apple's purportedly in-development tablet device, whose larger screen would be ideal for watching videos. Contacts who claim to be aware of the plans corroborate other assertions that it will launch in March and is intended chiefly as a media player. Most past claims have it equipped with an approximately 10-inch multi-touch screen, a variant of the iPhone OS, and possibly 3G data.

Whether or not studios will agree to Apple's plans, if authentic, aren't clear. Cable and satellite TV providers increasingly see themselves fighting against Internet TV sources and have taken extra measures to either lure customers back to existing services or to punish customers for abandoning traditional TV: streaming-as-a-bonus services like Comcast's xfinity TV or tiered bandwidth caps have grown in popularity. Comcast and Time Warner are distinctly less likely to allow TV networks like NBC and TBS to participate as they may see Apple stealing their customers.

Apple CEO Steve Jobs' presence on the Disney board is likely to help sway it and ABC towards any deal.

Also, movie and TV studios have historically been reluctant to accept Apple's demands as music labels were with the launch of the iTunes Music Store in 2003. Apple's quick control of digital music left record labels dependent on iTunes for success and is known to have frightened video producers determined to keep their choices open. While many agree to sell ad-free episodes, they're less likely to accept similar terms for bulk viewing and have often preferred ad-supported web streaming in these circumstances.

Regardless of success, a subscription plan would be a distinct break from Apple's prior attitude, which has usually insisted on per-item ownership instead of subscriptions. TV may be different as it has long followed a subscription model and would be easier to digest for iTunes visitors than subscription music.

by MacNN Staff



  1. iphonerulez

    Joined: Dec 1969


    The tablet would be perfect for me to use

    with my Slingbox/cable TV hookup over a WiFi connection so I won't be bothering with any subscription services. The more I hear about the tablet, the more I'd like to have one.

  1. laryhanis

    Joined: Dec 1969


    CBS, Disney ready for iTunes TV subscriptions?

    Its a nice news about CBS disney ready for itunes tv subscriptions.Thanks to see this article in this side.

  1. testudo

    Joined: Dec 1969



    Why in the world would one need a 'tablet' for a subscription service? Couldn't this just be offered over AppleTV and though iTunes?

    And one would think that they'd get more per month/viewer than cable TV, as they get to sell ad time on those shows. And most likely Apple will insist on no commercials in their content (and the users would be up-in-arms if there dared be a commercial in there).

  1. testudo

    Joined: Dec 1969



    Apple CEO Steve Jobs' presence on the Disney board is likely to help sway it and ABC towards any deal.

    If anything, Steve has to excuse himself from any discussion of this at Disney/ABC. That is nothing if not a conflict of interest, and if Steve gets involved at all in that decision, you can be sure Disney shareholders will be suing them faster than a West Texas lawyer with a patent claim.

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