Here's what Tim said at Apple's annual shareholder's meeting earlier this year:
http://www.macworld.com/article/116...nter_stage_at_annual_shareholder_meeting.html
Cook, in response to a shareholder urging the company to use its cash hoard to come up with an alternative to Netflix, Hulu, and the like for video-content distribution: “There are plenty of apps that provide content, and users want those apps. We get profit from selling devices...our focus is not on making a lot of money in content...An a la carte video system isn’t likely to arrive quickly, because the money is big for the companies involved.”