Apple materialized its music streaming endeavors with its new Apple Music and is now looking to pull a similar scheme with TV streaming.
Apple Music launched just recently and it stirred lots of interest from the very beginning, shaping up as a great hit. With music streaming out of the way, Apple is now focusing on other ambitious plans for the future.
The company is reportedly gearing up to launch a "cable-killer" TV app and is already in advanced negotiations with all four major broadcast networks. The news comes from the New York Post, which cites multiple sources familiar with Apple's behind-the-scenes negotiations.
Apple, with Tim Cook leading the charge, is already in advanced talks with U.S. broadcast networks ABC, CBS, NBC and Fox, according to the report. While negotiations with these networks are going well and "are rapidly gaining momentum," however, the networks don't control local affiliates. This has been one of the hurdles in closing a deal until now. Apple doesn't want to chase down affiliates across the country to obtain those rights.
Instead, the company reportedly asked the networks to obtain those rights from their affiliates, and this strategy is apparently working out.
"The networks are close to having the right to negotiate with Apple on behalf of their affiliates," sources told the New York Post.
The report further explains the proposition the networks made to their affiliate groups: if they agree to join the party and offer their feeds, they will get some of the added revenue the Apple streaming product will generate. Tribune and Sinclair are two of those affiliate groups, but there are more.
"Apple has a lot of reach and this is a good opportunity," added a source within one of the four main networks.
Unsurprisingly, Apple reportedly wants a hefty 30 percent share of any subscription revenue generated from this new app. This could be another big hurdle in securing a deal since some content providers may not agree to split the revenue in this manner.
Disney or CBS will likely be the first to jump on board and sign a deal with Apple, the report further notes. Moreover, Apple's offering could also include cable channels such as ESPN.
It remains unclear for now just how much Apple plans to charge for its upcoming service, but it could range between $10 and $40 per month. The monthly fees are reportedly still under consideration for now. If all negotiations go well and Apple reaches an agreement with the networks and their affiliates, its "cable-killer" streaming TV service could launch as soon as this fall.
