CBS CEO: Apple's 'Pressed the Hold Button' on Streaming TV Service [Update: Bloomberg Confirms]

[TheSuperE]

Speaking today at the Business Insider Ignition Conference in New York City, CBS CEO Les Moonves made some statements suggesting Apple may have put the development of its rumored television streaming service on hold.

"They've had conversations on it and I think they pressed the hold button," Moonves said, referencing prior talks CBS has had with Apple about joining its subscription service. Apple and CBS were reportedly negotiating prices before Apple paused the discussions.Apple's streaming television service was originally rumored to be launching alongside the new Apple TV, but Apple has had ongoing trouble establishing deals with content providers. Difficulty securing content deals has delayed and shifted Apple's television plans for years, but in 2015, it looked like a things were coming together for a subscription service.

In May, Moonves, who has been very open with his comments on CBS' negotiations with Apple, said Apple and CBS were still in talks and that CBS would "probably" ink a deal with the Cupertino company. At the time, he had recently met with Eddy Cue and said he was "very excited" about Apple's service. In October, he made similar statements, suggesting discussions between the two companies had not progressed further towards a deal.

Rumors have suggested Apple is aiming for a web-based streaming service that would bundle approximately 25 channels for $30 to $40 per month. Earlier this year, Apple was said to be in discussions with several content providers in addition to CBS, including ABC, Fox, Disney, Viacom, and Discovery.

Given Moonves' comments and the general lack of recent rumors, it is not clear when Apple will launch its streaming television service. An August report from Bloomberg suggested negotiation troubles had delayed its release until 2016, but there's been no word on Apple's plans beyond that. There are a lot of factors involved in the launch of the streaming service, as Apple needs to secure deals with dozens of content providers, including local affiliates.

Moonves believes Apple's streaming television service, or something like it, will launch in the near future. "This will happen," he told Business Insider. "People will not be spending money on channels they don't want to watch."

Update: Citing sources familiar with the matter, Bloomberg has confirmed that Apple has suspended its plans to offer a web-based streaming television service and will instead focus on "being a platform for media companies to sell directly to customers through its App Store."

Apple is not "giving up entirely" on a TV service, but it has not been able to secure deals that would allow it to sell a package of channels for $30 to $40 per month as media companies want more money for content.

Article Link: CBS CEO: Apple's 'Pressed the Hold Button' on Streaming TV Service [Update: Bloomberg Confirms]

Pretty disappointing to just roll over. This isn't (or wasn't) Apple's style. Honestly it makes the AppleTV- MUCH less appealing and I've got one. I hope this is all BS. But since Jobs passed everything has turned from a 'can do' to a 'well maybe, maybe not' attitude.

 

[dan110]

Ok .... CBS won't be on Apple TV. Is anyone really missing anything?

 

[furi0usbee]

Well, that's a different story. I see your point on that one, but...

Your other post was stating your disappointment in Apple because of the reported rumored price and content of the service.

Disappointed on two fronts. One, for putting this at the back of the line, like everything Apple TV they do, and two, for attempting to offer us cable company style prices for a streaming service. I'd pay $40/mo. IF I could pick the 25 or 30 channels I want from a grand list of all their channels, or include X amount of TV shows streamed from iTunes store each month. They need to get creative. But $40/mo. for the same old same old? Nah for me.

Apple could own this space, even take a hit on the subscription price and lose a bit, but make it up in hardware to finally strong-arm that industry. If Sling can start at $20/mo, surely Apple can get us a $29.95 plan with more content and sweeten the pot with some throw-in iTunes views, maybe like credits. Basic plan you get get 10 free credits per month. Watch any TV shows you like with your subscription, in addition to live stuff.

If it's just another (streamed) bundle, I am not excited at all and am not a customer.

 

[furi0usbee]

WTF is a "Hold Button"?

IDK, but Apple appears to have pressed it...

 

[T-R-S]

The old CEO's still want to rely on the 1950's TV model unfortunately these guys still want to be greedy - the stalling tactics are guaranteed to keep P2P alive and going for the next 10 years.

 

[ninjadex]

So I take it Eddy Cue couldn't get the job finished, again? I can't imagine the low sales numbers on ATV 4 are going to add much leverage when trying to close/negotiate those deals. This could be dead in the water.

 

[newdeal]

I wouldn't pay $35 a month (which would be $45 in Canada except it would never come to Canada) for anything anyway. Between my antenna with windows media centre running on a PC and Netflix I get everything I would want to watch.

 

[TallManNY]

Not sure why I would pay $35 when commercial-free Hulu only costs $12. I get all the big network shows except for CBS. And I don't know of anything I'd want on CBS that I'd be willing to pay an extra $23 for.

However, if they throw in ESPN (not ESPN3), FOX Sports, FX (for Fargo), AMC (for Better Call Saul and TWD), BBC America (Orphan Black), and Discovery, I *might* consider it. But then it's just a cable service with a better interface.

Exactly. It is a cable service with a better interface. That sounds great. Also one that you can stream everywhere in your house without running wires. If that was available and on a nice piece of cheap hardware, that would be great. But it isn't available yet.

 

[x0vash0x]

After reading the update to the story, it makes complete sense that Apple with compete with Netflix/Hulu rather than content providers/networks. Apple knows that consumers aren't interested in Live TV at the prices networks want. The things people are willing to pay for are Hulu/Netflix. I definitely imagine Apple combining both services in Apple Video.

I honestly think Apple is seeing how Amazon Prime Video approach would work. Imagine, if you will, the following....

You have a base streaming service (i.e. Netflix) for $9.99 a month. This includes a vast majority of iTunes movies and tv shows. It won't include the newest content, and it will have patches in what is available to stream, but that's because of license agreements and I think consumers are pretty aware of this and find it annoying but acceptable.

This service wouldn't let individuals download movies like it does for Apple music. Like I said earlier, maybe a 24 Hour download period so people who are going on trips can have access to some movies and shows while they don't have reliable access to internet. But, if you want to keep a movie or show for longer, you'll need to purchase it. Think of the lack of downloadability as Apple trying to up-sale. And honestly, most people don't seem to care about being able to download movies.

Newest content could be offered through a Hulu-Like subscription, but I don't think Apple would go this way. It's much easier for them to sell season passes and let consumers decide which shows they value. The 'Netflix' subscription gives you access to back seasons while the newest season will be for purchase only. This seems fairly reasonable. Plus again, it is Apple trying to up-sale its services.

I doubt they'll do Live TV. I think they're happy with 3rd Parties developing their own Live TV apps. Like, why does Apple need to offer Live TV when CBS has their own All Access service? Even then, what's the point? You still have commercials, you still have shows you don't like.

I could imagine Apple saying 'Look, CBS, no one wants to have your App. It's not a good user experience. What if instead WE let you charge people $5.99 and WE give them access to all of your content.' They propose this solution to each and every content provided. It seems like a no-brainer. It's basically a 'Channel Pass' instead of a 'Season Pass'.

Not to mention, this easily monitories podcasts. You could easily add podcasts to the mix. Hell, they could have their own 'Music Video Channel' and charge $1.99/Month for it. They could do what Google has been trying to do with YouTube for years.

This gives people a ton of options. Lets say you really like A CBS show. You have the option: purchase the one CBS Show you like for $30 and get it via season pass, or subscribe to the CBS Channel Pass. If you watch lots of CBS shows, of course you'd get the 'Channel Pass' but if you only watch one you could get the 'Season Pass'. Plus, Apple tells the company that they don't allow downloads unless you purchase the TV Show. And, if you don't really care all that much about the newest content, wait a year until it becomes 'old' and stream it. It appeals to everyone, depending on what you want and how you want it.

This, is what I believe the future of content consumption and distribution should be.

 

[X38]

Apple has probably half of all money in the world. They should just buy enough content providers to negotiate the deal with themselves.

 

[\-V-/]

Apple has probably half of all money in the world.

Nope.

 

[SirLance99]

Apple should buy Netflix and Hulu in one massive buying spree. Consolidate with their iTunes Store to create one massive media powerhouse that would be unstoppable

That's so cute you think that way. All the media companies would have to do is stop providing the shows and Apple would be left with nothing. It's not as easy as just buying them.

 

[Cisco_Kid]

I'd pay $1,200 - $1,500 a year for content without ads... I'm so over paying a premium price for satellite and being forced to watch ads.

Bring on the streaming TV Apple, flex your muscle and force a change for the consumers, most of us hate commercials !

 

[Dmunjal]

Apple should buy Netflix and Hulu in one massive buying spree. Consolidate with their iTunes Store to create one massive media powerhouse that would be unstoppable

Exactly! Why not buy Disney? What else are they doing with their $200B war chest?

 

[gijoeinla]

Why doesn't Apple just do their own video hosting platform, kind of like a not sucky YouTube, and cut these guys off at the knees? We saw the consequences of Apple providing a platform for developers to deliver apps, why not videos?? They've got Capture (Phones) and Editing, why not Delivery and Monetization?

I'm sure they are. Do a lot of you really *believe* Apple is at the knees of the content companies? Your kidding me right?

App related content is the future. I'd much rather click a Bravo button on my LAME UVERSE interface than still be searching for STUPID letters and language.

I'm dumbfounded why so few here grasp that clickable content will rule. Duh. There's already a generation or two that no no other realm than clickable content.

It's obvious Apple will be pushed into content development - it's no secret here in L.A. that that's where they r headed. There's no loyalty to "studio" content anymore. Those days are over. They can hold onto it all they want and demand top dollar and try to stop the progression of clickable or "touch" content.

It's too late.

While Bloomberg seems to think this is a failure for Apple on the contrary.

I seriously don't think their balls are sweating tonight considering they have DISTRUBUTION channels that number north of 500 MILLION USERS WORLDWIDE and counting.

If I were Viacom, Fox, Comcast Universal, Warners etc I'd be worried once Apple and every other OEM becomes its own independent producer. Insert Apple bidding on exclusive sports content here (World Cup etc)

Exclusive content is the order of the day people. Netflix and even Amazon prove this to be true. My 15 year old nephew and his circle of buddies could give a rats butt about old content.

Apple is doing the right thing.

 

[Dmunjal]

I'm sure they are. Do a lot of you really *believe* Apple is at the knees of the content companies? Your kidding me right?

App related content is the future. I'd much rather click a Bravo button on my LAME UVERSE interface than still be searching for STUPID letters and language.

I'm dumbfounded why so few here grasp that clickable content will rule. Duh. There's already a generation or two that no no other realm than clickable content.

It's obvious Apple will be pushed into content development - it's no secret here in L.A. that that's where they r headed. There's no loyalty to "studio" content anymore. Those days are over. They can hold onto it all they want and demand top dollar and try to stop the progression of clickable content.

It's too late.

While Bloomberg seems to think this is a failure for Apple on the contrary.

I seriously don't think their balls are sweating tonight considering they have DISTRUBUTION channels that number north of 500 MILLION USERS WORLDWIDE and counting.

If I were Viacom, Fox, Comcast Universal, Warners etc I'd be worried once Apple becomes its own independent producer.

Exclusive content is the order of the day people. Netflix and even Amazon prove this to be true. My 15 year old nephew and his circle of buddies could give a rats butt about old content.

Apple is doing the right thing.

New content developers are emerging but 99% of the revenue and profits still come from traditional studios and content companies. Netflix isn't as profitable as CBS.

 

[gijoeinla]

Exactly! Why not buy Disney? What else are they doing with their $200B war chest?

I seriously have said exactly this. Somebody will swallow up Netflix and if I'd bet on it will b Apple.

 

[gijoeinla]

New content developers are emerging but 99% of the revenue and profits still come from traditional studios and content companies. Netflix isn't as profitable as CBS.

You seem to think that 99% - which I challenge you to prove that true -- somehow can't or won't change.

Apples not out to revolutionize programming just be at the table for its EVOLUTION. Here where I'm at people are dumping cable left and right. Not sure what universe your in but dude it's happening. And it'll only accelerate. People loathe the cable / content companies. Do your research lol!

 

[Dmunjal]

You seem to think that 99% - which I challenge you to prove that true -- somehow can't or won't change.

Apples not out to revolutionize programming just be at the table for its EVOLUTION. Here where I'm at people are dumping cable left and right. Not sure what universe your in but dude it's happening. And it'll only accelerate. People loathe the cable / content companies. Do your research lol!

Netflix made $30M last quarter.

http://www.nytimes.com/2015/10/15/business/media/netflix-3q-earnings.html

CBS made over $300 last quarter.

http://www.wsj.com/articles/cbs-profit-falls-24-1438806876

That's a 10-1 ratio and there are hundreds of other networks.

I don't dispute cable cutting isn't happening. It's a trend that won't die. But it's early days and Apple can't expect to make money (its primary goal) without partnering or buying the traditional media and content companies.

 

[gijoeinla]

Netflix made $30M last quarter.

http://www.nytimes.com/2015/10/15/business/media/netflix-3q-earnings.html

CBS made over $300 Mylene last quarter.

http://www.wsj.com/articles/cbs-profit-falls-24-1438806876

That's a 10-1 ratio and there are hundreds of other networks.

I don't dispute cable cutting isn't happening. It's a trend that won't die. But it's early days and Apple can't expect to make money (its primary goal) without partnering or buying the traditional media and content companies.

Who said Apple is looking to "dominate" the content delivery space? Clearly the ads that Apple is using to promote Apple TV are very niched ads that clearly don't misfire signaling commercial dominance.

To me clear it's clear they are putting their toes in the mass market water to see where it leads. They would be fools to attempt a dominate position -- the market is still far too niched. I mean I hate hate hate to bring up Apple Watch but only a short few months ago nearly everyone's called that program a failure yet - yet its rating very strongly as the item to buy this holiday -- hardly a failure of a NICHED product whose market will only grow -- in time -- same for Apple TV. They aren't sweating nothing. They are in the drivers seat. What disappoints so many of you is that they don't hit the accelerator hard enough. There's nothing wrong with a strategy of waiting until the market catches up to new technology -- rather than chasing it.

 

[jlc1978]

I recently signed up for a Netflix trial and got a message from my ISP that I went over my data cap but since it was the first time they would wave the $10 fee. How do people who go OTT not butt up against their data caps?

That's the whole pint, IMHO, of data caps. Cable providers realize that cable cutting is the way of the future, so data capris a way to recoup lost revenue from cable cutters. As long as they control the pipe, they will adjust their pricing structures to protect their revenue streams and profits.

Google is the potential disrupter for the cable company's business model. If they can reach a significant portion of the subscriber base with their fiber then the dynamics change. I could see Apple cutting a deal with Google to offer an affordable alternative; or Google morphing Chrome into a set top box. That would let them interject their own ads into a subscriber base who they can then monetize based on their knowledge of location, demographics, etc.

 

[Mums]

Why doesn't Apple just do their own video hosting platform, kind of like a not sucky YouTube, and cut these guys off at the knees? We saw the consequences of Apple providing a platform for developers to deliver apps, why not videos?? They've got Capture (Phones) and Editing, why not Delivery and Monetization?

You would think Apple could put together a good YouTube competitor, but look at the mess that is Apple Music..

 

[Ron Johnson]

It is simple. Make tv competitive. You choose your package and channels, 5 channels for 10$ month, 20 channels for 40$ a month, etc. These would be live tv channels.

That would sell in a heartbeat and apple would takeover the live tv market. People would access TV through Apple.

None of this current apple tv to play games and watch netflix. Which you can do with an iphone and a smarttv.

There is still a market for netflix and hulu this way, as they will have the same on demand options. Apple can add these as well in the itunes store and do something like apple music for TV.

 

[AZREOSpecialist]

Apple has really been sucking lately. Tim Cook is no Steve Jobs, that's for sure. Apple can't seem to do anything right. Mac Pro is stuck in 2013 and iPad Pro is epic fail. Now AppleTV which is more like Apple Roku. Too little too late. What a bunch of losers.

 

[Zoboomafoo]

Meanwhile, Netflix is changing TV right before our eyes. 32 original shows for 2016. They seem to get it.

Netflix is just another channel. How do you see them as changing TV?