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TV Networks Should Be OK Covering Cost Of Streaming To Apple TV

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In a report published Thursday, JP Morgan analyst Rod Hall commented on Apple Inc. (NASDAQ: AAPL)'s decision to ask TV programmers to supply their own streams and handle the responsibility and cost of the streaming infrastructure for an Apple TV service.

"HBO articles report that 60 percent of streaming viewing prior to the announcement of HBOGO on Apple TV was via the Apple TV," Hall wrote. "Assuming other content owners are seeing similar behavior we suspect they will readily pay transport charges."

Re/code reported on Wednesday that, "Apple is asking TV networks to handle the responsibility and cost of the streaming infrastructure associated with its Web video service, industry executives say. That issue is one of many unresolved questions about the proposed service, which Apple would like to launch next fall but can't until it lines up programming deals."

The report continued, "Apple's proposal isn't necessarily surprising, since video services that stream via Apple apps today — including some of the networks Apple wants to work with, like Fox, CBS and Disney — all "stand up" their own streams, by working with content delivery networks like EdgeCast."

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Posted-In: Apple TV HBOGO JPMorgan Rod HallAnalyst Color Analyst Ratings Tech


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