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04/27/2024 01:22:14 pm

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Apple Clashes with Disney Over Internet TV Service

Apple TV

(Photo : Apple) Apple's best friend in the TV industry just got sour over its internet TV service.

Apple doesn't have a lot of friends in the television and film industry. It had a falling out with NBCUniversal (owned by Comcast) before it started to work on its internet TV service.

One partner it can always trust is Disney. Past relations between Apple, Disney and Pixar (owned by Steve Jobs before he sold it to Disney) have allowed them to work together on multiple projects, but the internet TV service might be turning this relationship sour.

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News came out this week about Disney apparently pulling out of the internet TV service after Apple revealed it didn't want all of the Disney channels. Instead, it wants a small number of the best channels, like ESPN, Disney Channel and some of the A+E Networks and ABC channels.

ABC and A+E Networks are all connected together by an alliance of Disney and ABC.

Channels like History, Lifetime, A&E and Crime Investigation Network are all part of A+E Network, of which Disney & ABC own 50 percent. ABC also has a huge line of programs available on 'All Access', ABC's own streaming service for internet-only customers.

Apple can't accept all of the channels Disney is offering because the licensing cost would be too high. It would also make the internet TV service extremely cluttered. Apple is planning to launch between 30 and 40 channels to start off at a price of $25 to $40 per month.

These channels should be big names like ESPN, AMC, TNT, TBS and even HBO. The latter is the biggest pay TV channel in the U.S. but Apple might be able to cut a deal where customers do not have to pay $15 per month to watch Game of Thrones, True Detective and other HBO exclusives.

Apple might have to cut another deal with Disney though, if the rumors of failed negotiations are true. If it loses Disney, it loses ABC and A+E Networks, three big players in the U.S. TV world. With NBC out of the door and no USA Network, Apple is already in an awkward spot and might need to find compromises.

The internet TV service is planned to launch at WWDC 2015, with an actual release date sometime later that year. Apple will also re-launch Beats Music in June, the new streaming service set to compete with Spotify, Rdio and Jay Z's new service Tidal.

It's a big year for Apple in terms of services, something it's sorely lacking when compared to Google. If the internet TV service wins customers over, Apple will be in a prime spot to start negotiating even better deals with networks.

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