Apple’s Attempt to Conquer Video Via Subscriptions

Apple’s Attempt to Conquer Video Via Subscriptions

(battery blog)Apple is planning to offer television subscriptions over the internet, according to multiple industry sources, and so far CBS and Walt Disney are considering the idea.

The subscription service would involve allowing customers access to some TV shows from participating networks for a monthly fee, anonymous sources have told with Presario 2500 Battery. The subscription content would presumably be integrated into the iTunes Store and iTunes-compatible hardware. Though Disney and CBS are rumored to be interested, the companies have not officially commented on their plans.

Assuming the rumors are true, a subscription model would be Apple’s second major move to seize the digital video market. The Cupertino, California, company introduced the Apple TV in 2007, which stores and plays video content downloaded through iTunes for VGP-BPS2. However, Apple has repeatedly referred to the Apple TV as a “hobby,” implying the product has not made a serious dent in the entertainment market.

Also, the iTunes Store’s offering of video content pales in comparison to competitors’ catalogs. In March, Apple reported the iTunes Store had accumulated 40,000 downloadable TV episodes and 5,000 movies like Toshiba-PA3399U-1BRS. Around the same time, Netflix, which offers a rental service in addition to streaming-video hardware, had amassed 100,000 DVD titles and 12,000 choices of streaming content.

Apple’s rumored subscription strategy, if successful, could reshape the TV industry by offering a compelling (and presumably cheaper) alternative to the pricey bundles sold by television providers for PA3399U-1BRS. However, it will be tricky for Apple to get TV networks on board, said James McQuivey, a Forrester analyst who focuses on the consumer video market.

“It’s very hard to walk into these folks’ door and say, ‘I’m going to deliver revenue to you,’ when in the past few years they haven’t been able to do that,” said McQuivey, in a phone interview.How could Apple persuade networks for Presario 2500 Battery? The video-subscription strategy could work if Apple implements a streaming model, McQuivey said. Presumably that would involve allowing iTunes customers to stream TV shows without downloading them straight to their hard drives.

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