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Apple Presses Pause on OTT TV – Reports

Good news for video service providers: Apple has suspended plans to offer an OTT video service, according to reports.

But there's bad news for them too: Apple will instead focus on building a platform to let media companies sell directly to customers through the Apple App Store, according to Bloomberg Business, citing "a person with knowledge of the matter."

What this means to cable and other video providers: They won't have to compete with Apple directly for customers. But media companies will potentially do an end-run through the App Store to connect directly with viewers (boo!).

While Apple reportedly put its video plans on hold, Amazon is hitting fast-forward, considering creating a live TV service with subscriptions to Showtime, Starz, and other services, Bloomberg reports.

Video services offered by cable companies and telcos face a threat from consumers who prefer OTT providers. The problem has gotten so bad that even Maitreyi Krishnaswamy, director of FiOS TV, has joined the ranks of cord-cutters. (See FiOS TV Director Cuts the Cord).

To push back, cable companies including Comcast Corp. (Nasdaq: CMCSA, CMCSK), Dish Network LLC (Nasdaq: DISH) and Verizon Communications Inc. (NYSE: VZ) sell channel skinny bundles, Bloomberg notes.

CBS CEO Les Moonves said at a Business Insider conference that his company had been in talks with Apple to be included in the video service, but Apple had pressed pause, Business Insider reported.

Paws
No, not that kind of paws. (Photo: The strange sleeping positions of Ada (CC BY 2.0)).
No, not that kind of paws. (Photo: The strange sleeping positions of Ada (CC BY 2.0)).

Moonves says the time for the kind of service Apple was building will come, whether from Apple or someone else. "People will not be spending money on channels they don't want to watch," Moonves said, according to Business Insider.

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— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected]

kq4ym 12/21/2015 | 10:46:06 AM
Spending For What We Want As Moonves correctly says, "People will not be spending money on channels they don't want to watch." The skinny channel lineup seems to be moving rapidly forward. But, I've wondered though how many subscribers CBS is caputuring with it's CBS All Access offering. I'm not sure why many would buy what they get for free over the air, or through their current cable.
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