iTunes TV Subscriptions: Could it Happen?

Apple (AAPL) is reportedly working on a subscription model that would open television viewing through iTunes - sort of. We’re not talking about some sort of service tied to the Apple TV product or even a standalone TV with iTunes built-in (at least not yet.) The Media Memo blog Monday cited several unnamed sources who say that Apple is pitching the TV networks on a subscription model - though no deals have yet been reported.

Currently, television shows on iTunes are available for purchase, either by the episode or the full season. This model, from what I can tell, would allow users who pay $30 per month for a subscription to watch them without “buying” them.

Sure, the $30 subscription rate is far cheaper than monthly cable or satellite bills. But that doesn’t mean the cable or satellite folks should be running scared just yet. When iTunes first made the leap into video programming on iTunes, Disney (DIS) was the first to jump on board. The others followed, but not right away. Today, the programming lineup looks much better - but surely, Apple would have to cut new deals on a different distribution and revenue models with the networks.

Would the networks be on board with a model like that? It’s hard to say. I can’t imagine they’d want to disrupt relationships they already have in place with the big cable and satellite providers. But at the same time, it’s hard to ignore the influences of not only the programming being streamed over the Internet itself, but more importantly Apple, a powerhouse with a history of dominating and accelerating the growth of digital media in a “legal” marketplace.

For now, this subscription model chatter is all just rumor. No one, including Apple, has confirmed it. But I don’t put it past Apple. It sounds like something Steve Jobs and company consider. I also trust the reporting and sourcing of Media Memo’s Peter Kafka, so that makes it a bit easier to swallow.

Plus, it’s Apple - which, of course, means the rumor mill kicks into high gear again.

Comments

[frankz00:]

Here's basically what's going to happen. The networks are going to refuse. Apple will become a studio and the same networks that refused to join previously are going to complain that Apple is a "monopoly" that "treats them unfairly".... Waaaaaah!

Nov 02 05:22 PM

[SKR MBA:]

Oy.... Short memories, no pun intended.

Apple and Samsung have had a very long love affair with each other. Recall the .5 BN flash ram purchases last spring, the glossed over and largely forgotten investment Apple made in Samsung a year or so ago.

Samsung makes what are arguably the finest flat screen TVs on the market today. Big, gloriously cool ones. Just talk to true videophiles... Panasonic's taken a powder. Phillips? Junk. Sony? Yawn. All the rest are OEMs.

Seeking Alpha is the APPL shorters' preferred blog space of denial and FUD. Better be thinking long.

Wait for it...wait for it......can you say Apple TV, as in a true Apple TV...made by Samsung? Nobody wants to watch TV or a feature movie on their freakin' computer screens in their 5.1 or 7.1 surround sound-equipped living or media rooms. Unless, of course, if they are complete dweebs. Don't you think Jobs & Co. are already hip to this universal truth?

Do you think for a second that Steve Jobs watches TV on an iMac?

Steve Russell

Nov 02 05:27 PM

[joe in miami:]

$30/month is too much for TV re-runs which are available for free at Hulu and ABC, etc.

OTOH, if they charge $14.99 for all you can eat HD, shows, movies, specials and add music for $4.99 more, then maybe there's potential.

I'm sorry, but I can't give up History, Travel, Animal Planet, mixed martial arts, sports and news in HD.

Nov 02 05:55 PM

[dea_sys:]

You're off-base: Panasonic's new plasma HDTVs are rated as the very best HDTVs of any kind for 2009. Keep up.

And there's no need for Apple to make--or have anyone make for them--actual TVs. That's what Apple TV is all about--bringing media to any HDTV of your choosing. It does a great job of it too. I hope this rumored new service is realized.


On Nov 02 05:27 PM SKR MBA wrote:

> Oy.... Short memories, no pun intended.
>
> Apple and Samsung have had a very long love affair with each other.
> Recall the .5 BN flash ram purchases last spring, the glossed over
> and largely forgotten investment Apple made in Samsung a year or
> so ago.
>
> Samsung makes what are arguably the finest flat screen TVs on the
> market today. Big, gloriously cool ones. Just talk to true videophiles...
> Panasonic's taken a powder. Phillips? Junk. Sony? Yawn. All the rest
> are OEMs.
>
> Seeking Alpha is the APPL shorters' preferred blog space of denial
> and FUD. Better be thinking long.
>
> Wait for it...wait for it......can you say Apple TV, as in a true
> Apple TV...made by Samsung? Nobody wants to watch TV or a feature
> movie on their freakin' computer screens in their 5.1 or 7.1 surround
> sound-equipped living or media rooms. Unless, of course, if they
> are complete dweebs. Don't you think Jobs & Co. are already hip
> to this universal truth?
>
> Do you think for a second that Steve Jobs watches TV on an iMac?
>
>
> Steve Russell

Nov 02 07:31 PM

[casey00001:]

This is similar to the Blockbuster/Redbox situation. I can pay four dollars a movie at blockbuster or rent from a Redbox Kiosk for one dollar. Just who is winning market share and who is closing brick and motar stores. Apple is Blockbuster in this analogy, I don't know who will be the next "Redbox".

Nov 03 08:49 AM