Apple Inc. (NASDAQ:AAPL) delayed its plans to offer an internet-based live television service as it struggles to reach an agreement with media companies, according to Bloomberg based on information from people familiar with the situation.
The report indicated that Apple decided to focus its effort on becoming a platform for media companies to sell their programs to customers through its App Store. The tech giant noted that several media companies such as Time Warner (NYSE:TWX) are adopting the strategy of selling their programs directly to customers. Time Warner is currently offering HBO Now for $15 per month.
Apple is not giving up its live TV service
Apple is not giving up its internet-based live TV service. Media companies are currently resisting its plan to offer customers with a package of channels for $30 to $40 per month. The media companies are demanding more money for their program, according to one person, who requested anonymity.
During an industry conference earlier today, Les Moonves, CEO of CBS Corporation (NYSE:CBS) said the tech giant put its plans for a live TV service “on hold.” He expected the tech giant to release the service eventually.
“This will happen.It has four major networks and 10 cable networks, let’s say, and the price point will be in the $30s, $30 to $35 or $40 maybe. People will not be spending money on channels they don’t want to watch,” said Moonves.
Apple Watch 2 reportedly coming out in March
A separate report suggested that the tech giant is planning to launch the Apple Watch 2 during an event in March. There is also a possibility that the company will unveil a 4-inch iPhone 6.
Additionally, it was speculated that Apple may start selling the Apple Watch 2 in April—almost one year since the company started selling the first generation smartwatch. Apple released new colors, bands, and software features for the Apple Watch in September.
According to 9to5Mac, the tech giant has been working on features for the Apple Watch 2 including a new camera, wireless and health sensors such as sleep tracking.
Meanwhile, the stock price of Apple slightly declined to $118.23 per share on Tuesday. The shares of the company dropped from its highest price of $134.54 per share to its current trading price over the past 52-weeks. The tech giant lost more than 7% of stock value year-to-date.