Report: Apple wants TV companies to pay for their own streams

Apple is asking potential content partners to foot the bill for the streaming costs associated with the rumoured Apple TV service, according to reports.

Recode sources say networks offering their programming to any Apple TV service will be responsible for providing the back end infrastructure… and paying for it too.

The notion of paying their own freight for a heavily promoted Apple service has given executives pause,” the report points out.

According to those unnamed sources, Apple executive Eddy Cue is rationalising the decision by telling networks it wants to concentrate on creating the hardware and software, while leaving the streaming infrastructure to specialists.

However, Apple’s motives may also lie in avoiding the wrath of the internet service providers like Comcast, who sell their own video content over the web too.

Currently, Apple asks its content partners to “stand up” their own streams delivered to the Apple TV, but a full fat streaming package would likely increase the demand for bandwidth.
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Apple is currently thought to be negotiating with the main US TV networks – the likes of Fox, CBS and Disney – with a view to launching a service by next autumn.

Whether the network executives will be keen to sign on if they’re being asked to pay their own way for Apple to utilise the streams, remains to be seen.

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