Apple wants to take on Netflix, but the companies that provide content to Netflix aren’t that excited.
According to reports, Apple wants to have a streaming TV service available by the end of the year. The company has been talking with all the major content providers, but negotiations haven’t exactly been going very smoothly. The problem is that Apple offers a one-size-fits-all payment structure.
A New York Post article quoted an insider as saying Apple basically says, “We decide the price, we decide what content.” Another unnamed media executive was quoted as saying, “They want everything for nothing.”
Apple has a history of either dealing with small companies (case in point – the App Store, where developers have to go with Apple’s terms if they want a shot at app stardom) or holding monopolistic power (case in point – iTunes; if you want in, you need to abide by the rules).
But when it comes to streaming media, Apple is on a completely different playing field. It isn’t the leader; Netflix is. So for Apple to come in and set the terms and expect content providers to come swarming in is a bit arrogant.
To another point, cable companies and content providers probably don’t like the idea of Apple taking over their territory. The business of pay TV is lucrative, and there are already many channels for distribution.
So good luck, Apple. This may be one time where you have to buckle under the pressure.