Apple's 'Hard-Nosed' Negotiating Tactics Leading to Trouble in Television Market

Apple's "assertive" negotiation tactics have made it difficult for the company to establish deals with cable providers and networks, reports The Wall Street Journal, stymieing its efforts to build a more robust television platform.

According to The Wall Street Journal, Apple started talking with the Walt Disney Company in early 2015 about getting Disney-owned content onto its then-planned streaming television service, but Apple executives, iTunes chief Eddy Cue in particular, made demands networks were not prepared to meet.

appletvappstore

In particular, Apple wanted to freeze for several years the monthly rate per viewer it would pay to license Disney channels. TV channels usually get annual rate increases and rely on them to fuel profit growth.

Disney balked. Similar talks with media giants that included 21st Century Fox Inc. and CBS Corp. also stalled.

Apple sees TV as a way to push further product growth, but persuasion tactics that have worked in the mobile phone and music industries aren't working in the television industry. Content providers are reluctant to agree to Apple's terms because it would compromise traditional revenue streams. As The Wall Street Journal points out, inking a "sweetheart" deal with Apple could lead to traditional cable distributors demanding similar deals.

Over the last several years, Apple has made several attempts to enter the television market, seeking deals with Time Warner, Comcast, and other providers, but nothing has panned out. In one instance, Apple wanted full on-demand seasons of hit shows and a recording feature that would include ad-skipping in newly aired shows, something cable executives were surprised by.

Apple sought payments of $10 a month per subscriber from the cable providers and refused to rule out seeking an even higher share of each monthly subscription in the future, according to people involved in the talks. It also wanted users to sign in with Apple IDs, even though Comcast and Time Warner Cable would handle billing and customer service.

Up until last year, Apple was still in talks for a streaming television service that would bundle several popular live channels and on-demand television at a price point of approximately $30 per month, but Apple reportedly put the project on hold after being unable to establish the necessary deals because content providers were reluctant to unbundle their channels. Cue, who leads most of the deals, is known for his "hard-nosed" negotiating style and refuses to settle for less than what Apple wants.

Instead, Apple has shifted towards positioning its Apple TV set top box and the tvOS App Store as a platform to allow networks to share their own original content. Apple is also following in the footsteps of Netflix and Amazon Video with original programming aimed at promoting services like Apple Music and the App Store.

Three shows are in the works: a dark semi-autobiographical drama starring Dr. Dre called "Vital Signs," a reality series that follows App Store developers called "Planet of the Apps," and a music-based reality show that's a spinoff of "Carpool Karaoke."

Related Roundup: Apple TV
Buyer's Guide: Apple TV (Don't Buy)

Popular Stories

apple wallet drivers license feature iPhone 15 pro

iPhone Driver's Licenses: These 17 U.S. States Offer Them or Will Later

Thursday June 19, 2025 11:28 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states and Puerto...
iPhone 16 Battery Life Feature

iOS 26's New Battery Life Mode Available Only on These iPhone Models

Saturday June 21, 2025 9:02 am PDT by
Last week, we reported that iOS 26 introduces an opt-in Adaptive Power Mode on the iPhone, alongside the existing Low Power Mode. Apple says that Adaptive Power Mode can make "small performance adjustments" when necessary to extend an iPhone's battery life, including slightly lowering the display brightness or allowing some activities to "take a little longer." The full description of...
ios 26 call holding

iOS 26 Beta is Hiding a New Ringtone — Here's What It Sounds Like

Thursday June 19, 2025 7:25 pm PDT by
Apple is hiding a new ringtone within iOS 26. The new ringtone is an alternative version of the existing Reflection ringtone, which has been the default ringtone since the iPhone X was released in 2017. It was discovered within the code for the first developer beta of iOS 26, but it remains hidden, so you will not find it in the list of ringtones available in the Settings app for now. It...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in Three Months With These 12 New Features

Saturday June 14, 2025 5:45 pm PDT by
The iPhone 17 Pro and iPhone 17 Pro Max are three months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X through iPhone 14 Pro have a...
apple watch ultra 2 new black

Apple Watch Ultra 3 Finally Coming After Two-Year Hiatus

Monday June 16, 2025 8:45 am PDT by
Apple will finally deliver the Apple Watch Ultra 3 sometime this year, according to analyst Jeff Pu of GF Securities Hong Kong (via @jukanlosreve). The analyst expects both the Apple Watch Series 11 and Apple Watch Ultra 3 to arrive this year (likely alongside the new iPhone 17 lineup, if previous launches are anything to go by), according to his latest product roadmap shared with...
iOS 18

Apple Releases iOS 18.6 Public Beta

Wednesday June 18, 2025 10:24 am PDT by
Apple today seeded the first betas of upcoming iOS 18.6 and iPadOS 18.6 updates to public beta testers, with the betas coming just a few days after Apple provided the betas to developers. Testers who have signed up for beta updates through Apple's beta site can download iOS 18.6 and iPadOS 18.6 from the Settings app on a compatible device by going to General > Software Update. When the...
General Spotify Feature

Spotify Preparing to Launch Long-Awaited Lossless Audio Tier on iPhone

Thursday June 19, 2025 1:46 pm PDT by
Spotify appears to be gearing up to launch its long-awaited lossless music tier. Chris Messina (via TechCrunch) and Spicetify (via The Verge) spotted new lossless references within the code for Spotify's desktop app and web player. With assistance from Aaron Perris, MacRumors has confirmed that the latest beta of the Spotify app for the iPhone also contains new lossless-related code....
airpods 4 blue

Apple Offering Free AirPods — Here's How to Get Them

Tuesday June 17, 2025 6:33 am PDT by
Apple is running a new promotion that offers free AirPods to qualifying customers. Now through September 30, college and university students in the U.S., Canada, Mexico, and Singapore can receive free AirPods 4 when they purchase an eligible new Mac or iPad from Apple. AirPods Pro 2 are also available at a discount. If you do not want AirPods, the promotion also offers various other...
Craig Federighi No

John Gruber Reacts to Apple Declining His Interview After His Criticism

Wednesday June 18, 2025 8:10 pm PDT by
Every year between 2015 and 2024, at least one Apple executive agreed to be interviewed by Daring Fireball's John Gruber for a special WWDC episode of his podcast, The Talk Show. Last year, for example, Apple's software engineering chief Craig Federighi, marketing chief Greg Joswiak, and top AI researcher John Giannandrea joined Gruber on stage at the California Theatre in San Jose to discuss...

Top Rated Comments

Rogifan Avatar
116 months ago
I thought Eddy Cue had this reputation as a master negotiatior. Seems like that was a bunch of BS. Without Steve Jobs to close the deal Cue is worthless.
Score: 32 Votes (Like | Disagree)
bandalay Avatar
116 months ago
Cue is Apple's services boat anchor. Beats? iTunes? iBooks? TV?

All fiascos. Time to shake things up.
Score: 21 Votes (Like | Disagree)
jscooper22 Avatar
116 months ago
Negotiating is a different game without your Reality Distortion Field Generator, huh?
Score: 18 Votes (Like | Disagree)
Col4bin Avatar
116 months ago
Apparently Cook and Cue don't share the same "je ne sais quoi" as Steve Jobs. (But, we all knew that already.)
Score: 15 Votes (Like | Disagree)
Stella Avatar
116 months ago
Apple need to compromise, instead of having things their own way. They may have actually got a TV product out.

So.. Apple wanted unbundled content, only for themselves to bundle content back up again. The customer does not want bundled TV, they want to be able to pick and choose what they want.
Score: 13 Votes (Like | Disagree)
DTphonehome Avatar
116 months ago
Bottom line, cable execs care about the bottom line. They aren't going to risk slaying the golden goose by handing control to Apple. Doesn't matter if Apple can provide a better user experience. Until their profits are so diminished by piracy that it threatens their business model (which is still a fair ways off), cable companies are going to make token efforts toward user convenience.
Score: 11 Votes (Like | Disagree)