Can Apple Stop the Cord a Cutting Trend?

IMG_7103
We wrote last week about how HBO’s new streaming service was only to be offered through Apple TV; with HBO trading their cable masters for worshipping at the altar of non-cable provider Apple. Maybe we were premature.

Though technically an online service streamed into your Apple device, Apple’s new service is pretty much a traditional cable offering for the Netflix age. There’s even a cord in the picture.
According to Time, Apple is expanding its content delivery offerings, and adding cable service to the menu.

The average price of basic cable is now $64.41 per month, according to the Federal Communications Commission. Many Americans pay more than $100 per month for expanded cable packages. Apple’s service will attempt to undercut these rates with pricing at about $30 to $40 per month, according to the Journal, for a bundle of about 25 channels.

This model speaks to me. It doesn’t make me pay a 100% premium for bundled channels I don’t want to ever see. This is close to what cable was before ESPN and Disney started charging providers huge premiums for third tier channels handcuffed to their flagship channels. Disney/ESPN still have leverage. They don’t need Apple. The second Apple loses its market power, the other networks will likely strike.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s