Apple Frustrated by Inability to Reach Deals With TV Programmers for Television Service

ESPN president John Skipper spoke with The Wall Street Journal in an interview this morning, revealing some insider details on Apple's struggle to establish deals with content providers for a streaming television service.

According to Skipper, Apple is "frustrated" by its ongoing inability to find a mutually advantageous way to work with programmers. Though no deals have been established, ESPN "continues" trying to work with Apple on some kind of partnership.

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They are creating a significantly advantageous operating system and a great television experience and that television experience is fabulous for sports. We are big proponents of believing it would be a fabulous place to sell some subscriptions. We have ongoing conversations. They have been frustrated by their ability to construct something which works for them with programmers. We continue to try to work with them.

Skipper's comments are in line with recent rumors made by CBS CEO Les Moonves, who said Apple "pressed the hold button" on its streaming television plans after it was unable to establish the necessary deals. Rumors throughout 2015 suggested Apple was aiming to create a web-based television product that would offer a small bundle of channels for $30 to $40 per month.

Apple has been attempting to create some kind of television service since 2009, but the company has run into resistance from cable and content providers time and time again because of a reluctance to interrupt existing revenue streams and fundamentally shift the way cable is provided.

ESPN's deal with Sling TV, a service that offers streaming access to major cable channels, offers some insight into where Apple may be running into trouble establishing deals. There is an option in ESPN's contract with Sling TV that lets the deal be terminated should it cannibalize ESPN's core pay TV business, something Apple likely wouldn't have agreed to. Apple is also said to have run into trouble getting content providers to unbundle their channels.

While Skipper believes 2016 will see "further announcements" of different streaming packages from new companies, it is not likely Apple will be among them. The company's content struggles have caused it to put its streaming service on hold, with plans to instead focus on the tvOS App Store and its position as a platform that gives media companies tools to sell content directly to customers.

Related Roundup: Apple TV
Tag: ESPN
Buyer's Guide: Apple TV (Caution)

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Top Rated Comments

blut haus Avatar
110 months ago
The cable providers are notoriously greedy and out of touch with what people want. They insist on garbage bundling. One good channel with 10 other crap ones. Apple is going to need to use some of that famous cash reserve and invent us something entirely new. Go straight to the content creators.
Score: 32 Votes (Like | Disagree)
jetjaguar Avatar
110 months ago
Wish apple would just do a service like apple music with their whole movie and tv catalog
Score: 21 Votes (Like | Disagree)
macintologist Avatar
110 months ago
I'm a "cord-never." I've never subscribed to cable and I never will, whether it's literally cable or whether it's fed through an internet pipe. I'm never paying $40/month for a bunch of channels I don't want.
Score: 11 Votes (Like | Disagree)
Menel Avatar
110 months ago
The cable providers are notoriously greedy and out of touch with what people want. They insist on garbage bundling. One good channel with 10 other crap ones. Apple is going to need to use some of that famous cash reserve and invent us something entirely new. Go straight to the content creators.
Bundles are ok... sometimes.

Hulu nails it. NBC, CW, Fox, ABC. (stills needs CBS for the new Colbert) Bundled in, basically the major over the air channels. But instead of being on their over the air schedule, I'm at the leisure of my own schedule.

Plus Hulu's home grown content.
Plus Comedy Central.

It's quite brilliant. They basically solved it if they would just get CBS. Ad-free for $12/mo. It's perfectly reasonable.
Score: 9 Votes (Like | Disagree)
farewelwilliams Avatar
110 months ago
what was apple expecting? a breezy deal?
Score: 8 Votes (Like | Disagree)
SoAnyway Avatar
110 months ago
This is a frustrated apple.

Score: 7 Votes (Like | Disagree)