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).
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.
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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