Apple To Launch iTunes TV Subscription Service
Apple has plans to pitch a new TV show subscription service via iTunes that will allow subscribed users to view their favourite shows from a variety of digital sources.
This idea was considered in the past but never became actualized due to current providers concerns with losing viewership to more lucrative advertizing. Web-based TV is prevalent now, however, and Apple is ready to give their pitch a shot.
Apple’s basic pitch to media companies would be that if it could convert a chunk of its more than 65 million iTunes account owners into paying $30 a month for subscription content (we assume that the content would be limited to certain groups and not open to everything in the store), content providers could find a new revenue stream in the digital space.
Apple has been pitching to various TV networks for the past few weeks in hopes of building a subscription base. The probable success of this new TV subscription plan is due to the fact that it won't be tied to any specific Apple software other than iTunes, and will therefore be widely accessible.
There is current speculation about Disney likely being the first to join the subscription service. CEO Bob Iger has taken interest in both iTunes and Apple in the past. Disney was the first to sell downloadable programs to iTunes in the past and will likely get involved in this venture.