Submission + - SPAM: iTunes to offer CBS and Disney?
Apple plans to launch the service next year, The Wall Street Journal said on Tuesday. Currently, the company is pushing TV networks to sign licensing deals, but it is unclear whether any of them have signed on yet.
CBS is considering offering programs from both the CBS and CW networks, and Disney is doing the same for content from ABC and the Disney Channel, according to the Journal.
An initial bundle of programs from CBS, Disney and other networks would be sold as a “Best of TV” package, and would cost US$30 a month, according to the report.
Apple would pay the content providers $2 to $4 a month per subscriber for a broadcast network like CBS or ABC, and about $1 to $2 a month per subscriber for a basic-cable network, according to the WSJ.
The new video strategy is part of an overhaul the iTunes store. Apple recently acquired online music streaming company Lala, but was secretive about its plans, only saying that it from time to time buys smaller technology companies.
The TV push could also boost sales of Apple’s $229 TV box, which has been struggling compared to other Apple products. Streaming content from services like Hulu or Apple TV could make some cable companies to re-configure their current offerings or rethink their distribution strategy altogether.
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