Apple is asking TV networks to handle the responsibility and cost of the streaming infrastructure associated with its Web video service, industry executives say. That issue is one of many unresolved questions about the proposed service, which Apple would like to launch next fall but can’t until it lines up programming deals.
Currently, companies that have content on the Apple TV all 'stand up' their own streams but only a few have a 24/7 live stream available. Costs for streaming run about five cents per hour per stream, according Tom Morgan who runs Net2TV.
While it might not be prohibitive, apparently the thought of paying 'freight' for what will likely be a hugely popular Apple service has given executive pause.
Apple SVP Eddy Cue is heading up negotiations for the new service which rumors say will feature a skinny bundle of about 25 channels for around $20-$35 a month. The service would run on a new revamped Apple TV that will also feature Siri and an App Store. Cue has reportedly told networks that Apple feels it should concentrate on what it's best at - consumer hardware and software - and leave other tasks like streaming infrastructure to those who specialize in it.
It's also suggested that if programmers are responsible for handling their own streams, Internet providers like Comcast and Verizon will be less likely to penalize Apple's service.
It's rumored that Apple could unveil a new Apple TV at WWDC in June. Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates.