Apple Pitching iTunes Subscription Plan to TV Networks
The Wall Street Journal's Digits blog reports that iTunes is in talks with TV networks about launching a $30 subscription service for tv shows through iTunes.
The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me.
Apple isn't tying the proposed service to a specific piece of hardware, like its underwhelming Apple TV box or its long-rumored tablet/slate device. Instead, the company is presenting the offer as an extension of its iTunes software and store, which already has 100 million customers.
A so-called "over the top" service could theoretically rival the ones most consumers already buy from cable TV operators - if Apple is able to get enough buy-in from broadcast and cable TV programmers.
A subscription service will only work if they can get enough content providers on board. Subscribers aren't likely to pay a monthly fee if they are also going to have to still pay for their favorite shows that aren't part of the subscription plan. A subscription move could end up putting Apple and Hulu in direct compeition as Hulu is also planning to launch a fee-based service next year. Unlike Hulu, Apple already has people paying for television content on iTunes.