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Apple Television Subscription Plan for Apple TV?

Dec 22, 2009 | 1 Comment |
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By Senior Editor – Kris Smith (@croncast)

Picture 5According to the Wall Street Journal, Apple is in late stage negotiations with CBS and Disney to add their shows to a pay subscription service for Apple TV and all other Apple media gadgets in 2010.

This is just what Apple TV needs to give it some real standing as a full fledged multimedia device for home usage. As it stands the ATV is a silver money pit with iTunes attached as a leech to funnel dollars to Apple unless it is hacked for XBMC and Boxee.

Apple is said to be offering major media publishers of subscription based content at $2-$4 dollars per subscriber. This money would come from an overall service fee of something around $30 per month that Apple Insider reported about a month ago.

“Those amounts are in some cases much higher than media companies receive from traditional distributors. The question is whether selling fewer networks at higher prices is better business.” – WSJ

This model isn’t that different that a traditional satellite or cable TV provider but where it does differ would be the possible ability to create a la cart packages. Another advantage for Apple over other companies to make this a reality is the nearly ubiquitous acceptance of iTunes.

iTunes is a far flung and multidevice front end that would appeal to users for in home, mobile or service on the road. Cable companies can only dream of the ability to deliver content in all of these places. Media providers like HBO have been trying for years with Windows only beta apps that are still being tested in small markets. This would usurp all of that effort and any from cable and satellite providers.

If Apple can pull this off, which seems likely, this could be the anticipated media coup d’état orchestrated by General Steve Jobs.

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