We previously heard that the new Apple TV streaming service could launch before the end of the year, although according to a recent report, Apple’s new TV service is now delayed until 2016.
The news comes in a report from Bloomberg, which says that Apple is still negotiating with the TV networks over the content for its new TV service and this is apparently progressing slowly.
Challenges in Negotiations
Apple had apparently planned to announce their new Apple TV service at their iPhone event on the 9th of September, but this has now changed and the service will not launch until 2016. The negotiations on the new Apple TV service have apparently stalled on the price Apple wants to charge its customers for the TV subscription service. Average cable bills in the US are around $80 a month and Apple is looking to charge people around $40 a month for their TV subscription service.
The delay is not just about pricing; it also involves the breadth and quality of content that Apple aims to offer. Apple is known for its high standards and wants to ensure that its streaming service provides a compelling alternative to traditional cable. This means securing deals with major networks and content creators, which is a complex and time-consuming process. Additionally, Apple is reportedly working on creating its own original content to further enhance the appeal of its service.
Upcoming Apple TV Device
We are expecting to see a new Apple TV device at their iPhone event next month, this is expected to come with apps and games and also a new design. The new Apple TV device is rumored to feature a more powerful processor, improved user interface, and enhanced remote control with touchpad capabilities. This would make it not just a streaming device but also a gaming console, potentially competing with other gaming platforms like the PlayStation and Xbox.
Moreover, the new Apple TV is expected to support Siri, allowing users to control their TV with voice commands. This integration could make the user experience more seamless and intuitive, aligning with Apple’s broader ecosystem of devices and services. The inclusion of an App Store on the Apple TV would also open up a world of possibilities for developers to create innovative applications specifically designed for the big screen.
The delay in the streaming service launch might also give Apple more time to refine the hardware and software of the new Apple TV device, ensuring that it delivers a top-notch experience right out of the box.
Market Implications
The delay of Apple’s TV service could have significant implications for the streaming market. Competitors like Netflix, Amazon Prime Video, and Hulu continue to expand their content libraries and subscriber bases. By delaying its entry into the market, Apple risks losing potential customers to these established players. However, Apple’s strong brand loyalty and ecosystem could help it quickly gain traction once the service is launched.
Furthermore, the $40 price point that Apple is targeting could disrupt the traditional cable industry. If Apple can offer a robust selection of channels and content at half the price of a typical cable subscription, it could attract a large number of cord-cutters looking for more affordable options. This could pressure cable companies to rethink their pricing strategies and potentially lead to more competitive pricing in the industry.
In conclusion, while the delay of Apple’s TV streaming service to 2016 is a setback, it also provides Apple with more time to negotiate better deals, refine its offerings, and ensure a successful launch. The upcoming Apple TV device, with its new features and capabilities, could set the stage for a compelling streaming service that challenges the status quo in the entertainment industry.
Source Bloomberg
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