Apple taking the fight to Hulu and Cable providers
The WSJ says that Apple’s plan for iTunes TV show subscriptions would have you pay a monthly fee for “access to some TV shows from a selection” of major networks, and that CBS and Disney are the two most seriously thinking about it. CBS would apparently offer up shows from both CBS and the CW, like Gossip Girl, while Disney would be offering up shows from ABC, ABC Family and the Disney Channel. What’s interesting is that the networks could actually make more money per subscriber than they do from cable companies, with broadcast networks picking up $2-$4 per subscriber, and cable networks grabbing $1-$2. (Which has to piss cable companies off, no doubt why networks are treading carefully around this proposal.) Originally, Apple had floated something more like a traditional cable payment, like paying $30 a month for a big bundle of TV stuff.
Earlier in the month we pointed out in the Hulu article, step that company needs to take to ensure onlien success of a subscription TV model. With Apple knocking on their heels will Hulu wake-up and smell the roses. Their window for continue success is closing . Though Apple tv never picked up well out combining their service with the release of the rumored Apple tablet might service them well.