Apple Inc. (NASDAQ:AAPL) is moving fast on its proposed video streaming service as recode reports it is in advanced talks with TV guys who are to provide content for the service. The iPhone maker has reportedly asked the TV guys to provide shows for its upcoming streaming service, as well as streams. However, while the cost of streaming is usually low, Apple remains concerned that costs could escalate with time in instances of a heavily promoted service.
TV networks to be carried on Apple Inc. (NASDAQ:AAPL) streaming service will have to handle the cost of streaming infrastructure associated with Web Video service. This is one of the many unresolved issues about the proposed service that could have a massive impact on the Cupertino-based company launching the service this fall.
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Apple proposal includes network streams
The proposal is somehow not surprising as most of the streams are set to come from the likes of Fox CBS and Disney, which already have the streaming infrastructure in place. Current streaming services on Apple App also come with their own streaming infrastructure. It is also emerging that Apple wants to focus on what it does best which is creating consumer hardware and software and leave other tasks such as streaming infrastructure to the content providers.
Apple Inc. (NASDAQ:AAPL) believes that by letting the programmers handle their own streams, internet providers would be less likely to penalize the service. Apple is trying to avoid a scenario where it would be forced to sign exclusive deals with the bandwidth providers for a speedy delivery of streams on its platform. Netflix, Inc. (NASDAQ:NFLX) found itself in the same problem having been forced to sign commercial agreements with Comcast Corporation (NASDAQ:CMCSA) and Verizon Communications Inc. (NYSE:VZ) for speedy delivery of streams.
Little remains known of the upcoming service with reports suggesting that Apple Inc. (NASDAQ:AAPL) could shed more light at the upcoming World Developers conference in June. Initial reports indicate that the service could be offered for as much as $30 to $40. Apple is also rumored to be preparing for a ‘skinny’ bundle in terms of channels, mostly omitting the niche ones.