Apple Reportedly Planning Fall Release Of Web TV Service

Although nothing has been confirmed by the company, there have been rumors circulating about Apple’s plans to offer a new online television service. According to sources, the technology giant has been in talks with programmers to provide a slimmed-down bundle of TV networks this fall, which would be available on Apple devices such as the Apple TV, iPhones and iPads.

Now, according to a new report by the New York Post, Apple may offer to share data with programming partners to get them on board with its cable-like TV network package. Sources have revealed that in order to entice broadcast networks and others to go along with the service, Apple will share data about its viewers, including what they watch and when they watch it.

This information comes as big news to the auto industry, offering the possibility of better audience targeting for both manufacturers and dealerships. Apple has always been known for keeping consumer data private, so if this rumor is true, it would mark a big change for the company and would illustrate just how far Apple is willing to go to ensure success with its new offering.

However, will the price of the service and its limited channel offerings be able to entice viewers to subscribe?

According to the Wall Street Journal, Apple’s “skinny” bundle will offer approximately 25 total channels, featuring well-known channels such as CBS, ESPN and FX, while leaving out many smaller networks that are available in standard cable TV packages. Although the number of channels would be significantly less than traditional cable, the service is said to be planned to cost less too, at a price of between $30 to $40. Consumers pay an average of approximately $64 for traditional “expanded basic cable service,” so Apple’s service could be between 53 percent and 37 percent cheaper. Even though the number of channels available would be much less, it may still interest a large number of consumers. Nielsen has reported that “consumers have [only] consistently tuned in to an average of just 17 channels.” Therefore, having more channel offerings is not necessarily the most important feature for cable subscribers.

Truthfully, many people currently pay for far more channels than they actually want. Based on this concept, Apple may be onto an effective TV model by providing consumers with the channels that they really want to watch, without all of the unnecessary additional offerings.

One question that has been raised is that even if consumers only watch an average of 17 channels, are these the same choices across the board, or are their preferences significantly varied? It’s difficult to gauge, and this is certainly something that Apple will have to explore deeply in order to have success with its limited offering.

Another noteworthy consideration is that many consumers buy Internet and cable in bundles, which makes the price of each service much cheaper. For example, Comcast offers the XFINITY Starter Double Play service for $79.99, which includes 140 channels and Internet speeds of 50 MBPS. In comparison, consumers can purchase just the XFINITY Internet service at the same speeds for $34.99. Will Apple be able to effectively compete?

One thing that’s clear is consumers are rapidly moving in the direction of watching the majority of their media content via online streaming. If Apple is able to create a streaming service that offers better ways to discover and consume content, the company may be poised for success in this initiative.

In the auto industry, television ads are a massive part of advertising campaigns for manufacturers and dealerships. If it’s true that Apple will share viewer data, the potential for better audience targeting on its service is a very enticing prospect for marketers, and we’ll be watching for additional information as it becomes available.