CBS Turned Down Apple TV Subscription Service Deal

During their earnings call this afternoon, CBS’s Les Moonves made comment that the media company has turned down a partnership with Apple. Apple offered the media company a streaming deal on the Apple TV. When he was asked why the deal was turned down, Moonves says that it was because of the ad-split revenue that Apple was trying to reach an agreement over.

As reported by GigaOM:

When asked about CBS’s appetite for striking deals with new streaming providers that might not have the money to pay cash upfront to license its content, Moonves said that CBS had decided against joining an Apple TV service because it was based on an ad split.

There have been rumors that Apple have been trying to reach a subscripton deal with media companies. As many have read in the Steve Jobs biography by Walter Isaacson which we have posted many posts about, it revealed that Jobs quoted that he had cracked the Apple TV. The above report proves that Apple are doing this for real and they are going after media companies. But why do they need to do this?

Quoted below are the types of agreements that Apple wants to implement on the iTV that is rumored to come in 2012. This is from the D8 conference:

Then you get into another problem. Which is there isn’t a cable operator that is national. There is a bunch of cable providers. There isn’t like a GSM standard like with phones. Every country has different standards, different government approvals. It’s very balkanized. I’m sure smarter people than us will figure this out. That’s why when we say Apple TV as a hobby we use this phrase.

What Do you think about that ?

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