Apple is Pitching iTunes TV for $30/Month to Networks

Apple has been pitching the idea of iTunes TV for $30/month to television networks for the past few weeks, according to a MediaMemo by Peter Kafka.

The service would obviously work with the Apple TV but would not be tied to it. Instead it would work through iTunes. Since Apple already has a huge install base for the iTunes software it would allow for quick and easy market penetration.

Apple has told industry executives it wants to launch the service early next year, but I have yet to hear of a single programmer that has made a firm commitment to the company, which has tasked iTunes boss Eddy Cue with promoting the idea.


Industry executives believe it will be Disney that signs on first. The company has demonstrated a willingness to experiment with different sales models and Steve Jobs is Disney’s largest single shareholder.

Network executives are said to be interested in the idea but worried that it will damage their relationships with other partners and that it will hurt advertising revenue and ratings.

Kafka notes that the move to deliver TV over the Internet is already underway. Services from Netflix, Amazon, YouTube and Hulu are beginning to gain traction. Apple's idea is no longer a huge stretch. Says one executive briefed on the company’s plans: “I think they might get it right this time.”

Apple wants to launch the service by early next year.


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