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TV Affiliates New Best Friend: Apple’s Forthcoming Streaming Service

Jul 14, 2015  •  Post A Comment

The broadcast networks “are close to having the right to negotiate with Apple on behalf of their affiliates, “ reports our good friend Claire Atkinson in the New York Post.

The story continues, “Those affiliate groups, which include Tribune and Sinclair, are being told by the networks that if they opt in and offer their feeds, they will be able to share in the added revenue the Apple streaming product will produce, sources tell The Post.”

Here’s the background, according to the article: Apple wants to offer live, local TV feeds on a streaming service. However, it didn’t want to have to negotiate with every TV station group in the country. “So Apple CEO Tim Cook’s team asked the networks to obtain those rights — instead of having Apple chase those rights around the country itself.”

The story adds that “Disney or CBS will likely sign the first deal with Apple to get the so-called skinny bundle off the ground — though a host of other hurdles remain, the sources suggest. One of those obstacles could be Apple’s insistence that TV partners give up 30 percent of the subscription fee if users buy it in the App Store.”

To read more details about this item, please click here, which will take you to Atkinson’s original story.

9 Comments

  1. Well the cable company that I work for pays around $2 per subscriber per month back to the broadcast network and that is just for (1) channel. That doubled from last year, a 100% increase. That was the broadcasters forcing a rate hike down the cable operator’s throat. Obviously, each cable company carries a number of broadcast channels all averaging, in my case, somewhere between $1.50 to $2.00 per subscriber per month per channel. That is what the cable company pays the broadcasters such as CBS, NBC, FOX, ABC, etc. just to carry their channels. This is just another reason cable prices keep going up. An individual who picks up the same broadcasters with an antenna pays $0, which is fine.

    Maybe Apple will get a better deal.

  2. This situation will be solved when cable and satellite companies agree to alacarte. Once people can pick and pay for the networks they want, the dynamics will change drastically. Why should people who never watch sports have to pay for a dozen sports channels? Why should someone who doesn’t care about cooking and decorating be required to pay for those channels? That is why there’s such a jump in online, where I only pay for what I want.

    • This is a good post and may be one that I will follow up to see what the resutls are.A friend e-mailed this link the other day and I will be eagerly awaiting your next piece of writing. Carry on on the amazing work.

  3. This is how the cable industry works. Cable companies cannot offer a la carte. Cable companies are held hostage by the programmers. Most contracts that cable companies sign, if not, “forced” to sign, by programmers are specifically written by the programmers to offer a group of channels. In other words, if you want to offer ESPN, ESPN forces you to add ESPN 2, ESPN News, ESPNU. Viacom, who owns MTV, VH1, etc. forces you to offer MTV, VH1, CMT, Nickelodeon, and others. Fox forces you to offer FX FXX, FXM, Fox Sports 1 & 2, etc. I don’t want to leave out NBC/Universal and their suite of channels, same thing. The Discovery Channel group of channels, same thing. Scripps Networks, same thing. The cable company doesn’t have a choice, in most cases, if they want to offer a specific channel, then the cable company is bound by contract, to offer a specified group of channels. The programming contracts are generally written so that it is all or none. A la carte would cost programmers billions of $ in lost revenue. It would also force programmers to shut down some channels that are not cost effective in an a la carte environment whereas, today, they force cable operators/consumers to support those channels.

    Furthermore, most contracts specify that you have to pass and pay for a specific percentage of your subscriber base, usually 80%. That means 80% of all of your subscribers have to receive these channels and that the cable company HAS to pay the programmer for all 80% of these subscribers. Contracts can also force you to add NEW channels that the programmer may launch a year or two down the road and pass that same and pay for that same 80% subscriber base. There are many, many stipulations written into programming contracts and most do not favor or care what the wishes of the cable operator are.

    Don’t complain that Cable Operators and Satellite companies, DirectTV/Dish Network, don’t offer a la carte. Complain that programmers won’t let them. Until programmers are willing to write their contracts so that each channel can be offered individually by the cable operator, a la carte will never happen. Look at the new “Streaming Cable ” services that are being tested by Sony Vue and soon to be, Apple. You will see that same or similar package of channels. If Sony could offer a la carte, they would. If Apple could offer a la carte, they would. They can’t, so they won’t. Sony and Apple will end of signing those same type of contracts that the cable companies are forced to sign and you won’t see a la carte there either. Until the Congress/FCC forces programmers to write a la carte contracts, true a la carte will not happen.

    Anyway, that’s the way it works and it isn’t pretty. Cable operators would love to be more competitive in this ever changing video market where many channels and/or individual programs/shows are now available in some capacity to be streamed or purchased individually.

  4. How about Cable companies get serious about changing their business model and begin to create, produce and distribute quality programming for themselves? Over time they will be in a position to compete.

  5. Cable companies do create, produce, and distribute LOCAL quality programming already. Many of them do air “City Council Meetings”, “School Board Meetings”, “High School and Grade School Football, Baseball, & Basketball Games, etc.”, “Local News”, “High School and Grade School Band Programs”, “Local Church Programs”, some have gardening shows, some have other informative learning programs all located on “Local Channels”. You don’t get this programming on Direct TV, Dish Network, Netflix, etc. Unless, you’re suggesting this isn’t quality programming.

    Or are you suggesting, cable companies start filming programs like “Game of Thrones”, “The Walking Dead”, “Justified”, “Sons of Anarchy”, “Breaking Bad” or signing multi-million or billion $ filming & distribution contracts with the NFL, or MLB. Yea, that won’t drive the rates up.

    Maybe some of the major, major cable operators are affiliated with some of the major movie and/or TV studios like Comcast/Universal or Time Warner but there are hundreds or thousands of cable operators that simply do not have that affiliation or do not have millions or billions of dollars to invest in making “movies”, and/or signing contracts to film and distribute major sporting events, etc.

    • irfa3o yadakom 3ala ch3b souri ..mahma yakuon yajib alhifad 3ala arwah wsihat wasalamat assouriyin .wailla ittikhad akhaf dararayn waha9n addimae alabriyae hada ahsan min ay haja..abdel karim alkhattabi kana mou9awiman kabiran wahowa man ikhtara3a ma you3raf bi harb a3isabat 3indama ra2a anna alispan akhado fi izha9 arwah ahl almaghrib wsta3malo ma youfnihim min kimawiyat wasliha fattaka salama nafsaho ha9nan li dima2 rahimaka laho yasayidi ya abdel karim ..walahi lachay2 ya ayouha ra2is bachar arwa3 min an tafdia nafsaka bicha3bika alladi lan azayida 3layki bil 9awl anaka la tohibouh bal li ti9a anaka taf3al wa anna laysa mina man layach3oro fi nafsihi bi okhouwat ahkih fil watan mahma ikhtalafna ad3ou lkoul an yaltaji3a lilah an yajma3ana douna tafri9a wa an la takouna dou3a2ouna dida ba3diana bal an yajma3ana laho wala youfari9ona inaha ni3ma 3adima kolona yajiba na na3iha al3aych almouchtarak walmawada baynana hal nasina 9awla lah kontoum khyra oumatin okhrijat li nas hata asbahna 9asin hakada baynana walahi inna laha rahimoun bina fahal sanakouno nahno rohama2o bi anfosina .rahimaka laho ya bedel karim rahima laho chohada2ana wamadloumina rahima laho alkol alahoma anir basiratana li ha9 alahoma latahchorna 3omiyanne kolo bni adama khata2 wakhayro alkhta2in tawaboun akhi ra2iss 9om bima tomlihi 3alayka fitratoka salima wahia alislam i3ti lha9 lilmadloumin walmo9hourin tanal tawaba dounia walakhira ij3al maslahata alwatan faw9a kola i3tibar hata i3tibar alkorsi wadounia za2ifa .walaho almoufi9 .wasallam.

  6. hard to ‘boo-hoo” for any cable provider. They are practicing bundling pricing which I think is bull. The prices are way higher than they need to be. Adding all the junk channels is just a way to hoodwink the customer into thinking they are getting a better deal. I am glad to see people cutting the cords. Less TV for all!

  7. chers syriennes et seiirns je vous souhaite une tres bonne vie atamana lakoum kol asalama walnajat..ikhwani souriyin mo3aradatan wamouwalin..ikhwani kana laho ma3akoum fantoum yajib an todrikou anakoum bayna fakay kamachah almou2amarato alkhrijiyah min jihatin wa9iwa alfasad laysa fisouria fa9at bal al3arabia bisifa 3ama li anana fi ha9i9at alamr kolona nomatil omma wahida walaysa kama yohawil an yojazi2ana almosta3miroun ..ikhwani 3alaykoum walahi bssabri wasid9 kama 9ala tari9 ibno zayad hada dabito almaghribi achoja3 fi jaychi alomawiyin aladina tomatilouna antoum ahfada aloumawiyin..ikwani inna matahtajouna ilayfi fi3la howa nasihaton li wajhi lah wa3lamo anaha fi hadi l3asr nadiraton 9alilan ila min man rahimarabi..ikhwani la taltafitou lil mounafi9in wadawi almasalih waladin youridouna stighlalakoum mina tarafayn bal sawo machakilakoum ba3idan 3anhoum..fala hamad samsar alpetrol howa waman mitloho..wala rossia walakin inni ara anaho hana himayat arrouh assouria ..ana lan odafi3a 3ala nidam li ana laho man youdafi3o 3anh bal walahi ana kola souriyin ikhwani ad3oukoum fa9at li tafwiti alfoursa 3ala a3dae alislam watarahoum fima baynakoum..wana ma3a tatbi9i al9anoun ma3a man asa2a li abriya2 walmadloumin ..ad3oukoum litarayout whsb alamr jayidan..nohib souria 9awia ..mahma yakon fanahno3achi9nakom ..wakyfama konna f9ad niltoum i3jabana..lan youkhayiba laho man kharaja fida2an li9ana3at nabila..lan yokhayiba laho kadalika man kana 3ala sid9 yotabi9o mahowa mo9tani3 bih ihdaro ikhwani souriyin fa9at mina almonafi9in..

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