Apple, which revolutionized the music industry with iTunes, is now turning its attention to online TV services and ABC and CBS are among the networks that are considering joining the Apple venture.
Apple’s plans are to offer a less expensive online alternative to cable and satellite subscriptions. This will cause a big shake up in the TV business, however, negotiations are at a very early stage and could change.
ABC is a unit of Walt Disney, which could also make two of its cable channels, ABC Family and the Disney Channel, available through the proposed service. CBS owns half of the CW Network, a smaller broadcaster that could also join.
The Wall Street Journal reported that other major TV companies,
including News Corp, which owns FOX, and Turner Broadcasting, which owns CNN and TNT, are wary of Apple’s initial overtures.
To overcome hesitation on the part of studios, Apple is considering paying the networks per-subscriber rates higher than those offered by cable or satellite providers. According to The Wall Street Journal, a customer downloading a network like ABC would amount to between $2 and $4 each month, while basic cable channels would equate to between $1 and $2 over a similar period.
If enough studios agree to a deal, Apple would have the service ready sometime in 2010.
