Rumors circulating suggest Apple may be looking to add monthly iTunes subscription for TV content.
All Things Digital posted a bit today (via MacRumors) that Apple is approaching broadcast and cable TV networks about a monthly subscription service. The idea is customers would pay a monthly fee, $30 was floated, and they can download their favorite programs via iTunes. While primed for Apple TV, the service would find much wider appeal on computers, iPhones, and iPods.
Such a deal would upset the model of TV program distribution, however. Channels pay fees to cable and satellite operators and enter into bundling packages. If subscriptions decline or if operators simply get fussy, they could threaten to drop less profitable channels from the same programmers. It's also unclear what channels would be involved, whether programming would be pick x number of programs, tiers of channels/programs or all you can eat. Also it would mess up how viewership is largely determined and ad rates set.
Despite networks so desperate they're cutting back primetime, this seems a bit of a long shot and/or simply misunderstood. Without practically giving it away, iTunes couldn't come close to equaling the value of cable or satellite in cost to content, even though people may find their own value in specific programs. Perhaps it could be ad supported, but that would likely need to be Hulu model where unique ads are sold for online, and that's completely outside of Apple business model. Another issue would be the lack of live programming for sports and special events. Also paying for broadcast TV, likely the biggest library of iTunes TV content, shouldn't make a whole lot of sense as a living room solution with free digital TV. That digital TV, by the way, is at full HD and with better quality than all iTunes, cable, and satellite. In short, there are a lot of bumps here.
