Jordan O'BrienApple is reportedly working on a new TV set-top box, which is scheduled to be revealed in September; although one killer feature will not launch with the box – a new TV service.
With record amounts of people ditching their TV package subscription and jumping to online services, such as Netflix and Amazon Prime, Apple is hoping to capitalise on this with a subscription service of its very own.
Unlike Netflix however, Apple’s service will offer live streaming of popular TV channels that viewers have come to know and love.
CBS Corp. and 21st Century Fox Inc. are reportedly in talks with Apple to bring its TV programmes to the company’s online TV service, but the broadcasters are currently not ready to sign a deal.
Talks are progressing slowly according to Bloomberg, as the networks are worried that Apple doesn’t have the computer network capacity in place to ensure a good viewing experience.
Apple had originally planned to reveal its TV service at a September 9 event, although after realising it did not have many deals in place with content providers, it has scrapped those plans.
The iPhone maker is still set to reveal the most powerful Apple TV set-top box to date, however.
Apple’s TV service will join Music and Pay as part of the company’s plan to keep customers hooked on its devices.
It is understood the company is currently struggling with pricing however, as Apple will have to fight with content providers to offer its TV programmes and movies at a lower rate to consumers.
In the US, Comcast dominates the cable market charging customers as much as $138.90 (£89) a month, depending on their location and package choice.
Apple is reportedly planning to charge users $40 (£25) to use its service, saving customers hundreds of pounds a year.
Despite the cut in subscription fee, Apple is reportedly promising content creators more money than they would receive from traditional cable companies.
Apple is also hoping to address problems with its computer network.
If the company hopes to deliver high quality live streaming to customers, glitch-free, over the Internet, then the company will require local data centres, or face excessive bandwidth costs from its four data centres in the US.
To do this, Apple could lean on its partner Akamai which has a network of thousands of data centres, but according to sources, this still is not yet good enough to support a TV service.
Akamai is currently expanding its capacity, but refuses to say whether this is to accommodate a live streaming TV service from Apple.
With this delay, Apple is now expected to make an announcement in 2016.