Apple customers excited about the prospect of getting their hands on Apple TV will need to wait until 2016 because content price negotiations are progressing more slowly than originally anticipated. Apparently, Apple is offering content providers around $40 a month for a package of popular channels and they networks want far more.
Sources familiar with the plans told Bloomberg Business that negotiations with TV networks owned by CBS Corp. and 21st Century Fox are progressing slowly. The networks are hesitant because of capacity concerns. Apple is struggling to create a fast and reliable computer network that would guarantee a smooth streaming experience.
In addition to capacity concerns, Apple has had trouble convincing networks to accept their offer of $40 a month for a package of popular channels – an fee much lower than networks are accustomed to receiving from cable and satellite providers.
Apple has refused to comment about the negotiations but sources say that although Apple is targeting 2016 for a release date, it is until uncertain whether they can close network deals in time.
"TV is a hard problem to solve," Eddy Cue, Apple senior vice president of Internet software and services, told CNET. "One of the problems you have with a TV is you have a disparate system with a bunch of providers. There's no standards. There's a lot of rights issues."
