Is Apple's Streaming Video On Hold?
Apple Inc. (NASDAQ: AAPL)'s stock is volatile following new rumors that its streaming video may be on hold to develop its live TV service. The other half of Apple TV's rollout is said to be the streaming TV service, which is being developed as a platform for media companies to sell directly to customers through its App Store.
Daily Downer On The Dow
The worst performing component on the Dow by far for Wednesday is Apple. Apple's stock is trading down 0.8 percent. It is showing a gain of 6.2 percent looking at the year-to-date performance.
The rumors are looking as murky as ever, as CBS Corporation (NYSE: CBS)'s CEO Les Moonves recently stated that the project is on ice. "They've had conversations on it, and I think they pressed the hold button," Moonves said at the Business Insider Ignition conference in New York.
Plan And Resistance
Apple's plan involves selling a package of close to 14 channels at a price of $30 to $40 a month. Apple has received resistance from many media companies that are demanding more money for their programming. According to Bloomberg, Apple was in discussions with broadcasters Twenty-First Century Fox Inc (NASDAQ: FOX) and CBS to license its programming; however, a lack of content led Apple to halt its plans to announce the service on September 9.
The company has a history of leaks, dating back to 2009. Here is Apple's timeline:
- November 2009: iTunes pitch for its TV for $30 a month. All Things Digital wrote, "Apple has told industry executives it wants to launch the service early next year."
- March 2015: Web TV service plans in fall. The Wall Street Journal reported, "The idea is to offer consumers a ‘skinny' bundle with well-known channels like CBS, ESPN and FX, while leaving out the many smaller networks in the standard cable TV package."
- March 2015:The Apple TV. BuzzFeed News wrote, "Apple currently intends to show the device off at its annual Worldwide Developers Conference in June."
- June 2015: Subscription TV service failed to be announced. Re/code reported, "Industry executives predict Apple's Web TV offering may not launch until later this year, or in 2016."
- June 2015: Apple delays Apple TV. BuzzFeed News wrote. "Apple hasn't yet finalized the network deals it feels are key to a successful go-to-market strategy."
- August 2015: Streaming TV is 50/50 for September 9 event. Fortune reported. "We believe Apple's content offering will include the majority of the network channels plus major cable offerings like ESPN, AMC, TNT, and TBS."
Apple's stock finished the year up 40 percent, adding around $200 billion to its market value.
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