EnTech: Apple TV subscription service: When will it launch and what might it offer?

Apple TV subscription service: When will it launch and what might it offer?

Sometimes there are so many Apple rumours going around that they're difficult to keep straight, such as the latest information surrounding the Apple TV set-top box and its upcoming, so-called subscription TV streaming service.
The Apple TV is overdue for an update. It's been over 800 days since Apple has refreshed the device, which has led to much speculation about whether the Cupertino-company plans to continue developing its "hobby device". It's been suggested, however, that a new one might release later this year with a dedicated Game Store and a built-in TV tuner, among other things.
There are also far-out reports from analysts, like Gene Munster, who has repeatedly claimed Apple wants to abandon Apple TV in favour of a full-fledged Apple TV set. Apart from hardware, there is a lot of talk about what Apple is cooking up on the software side of things. Everyone knows Apple is supposedly getting ready to take over the living room, but part of its plan apparently includes a streaming service.
Here's everything we know so far about Apple TV's yet-to-be-confirmed subscription service, including when it might release and what it might feature. Also, if you want to know about all the rumours related to the next Apple TV set-top box, be sure to check out Pocket-lint's round up.

READ: Apple TV 2015: Everything you need to know

Release date, pricing, and availability

According to The Wall Street Journal, Apple is getting ready to launch a subscription-based streaming TV service this autumn. The report, which cited unnamed sources, claimed the service will cost between $30 to $40 per month and be available on iPad, iPhone, and Apple TV. You can expect the service to debut at Apple's annual Worldwide Developers Conference in June, ahead of a September launch in the US.

Timeline of talks and negotiations

Apple has been rumoured to be working on a subscription-based TV service since at least 2009, but the company has confirmed nothing. That said, during Apple's most recent earnings call, Tim Cook stoked consumers' imaginations worldwide when he confirmed television is something Apple "continues to look at". Apple is even trying to find a way to make a "greater contribution" than what it now offers, the CEO said.
One ongoing theory is that Apple hopes to revamp television by replacing existing cable subscription packages in the US, but its entire plan has been delayed due to failed negotiations. Content providers allegedly don't want to change the status quo, even though the television industry has been rapidly going web-based anyway. Dish, for instance, just launched a web-based, video-on-demand service called Sling TV.

READ: Dish Sling TV: What is it?

2009
Original reports, such as this one from The Wall Street Journal, claimed Apple was in talks with CBS and The Walt Disney Company, and that both of them were considering participating in the web-based service. Nothing of course ever materialised from those alleged talks.
2012
Flash forward three years later and a similar report from The New York Post claimed that Apple wanted to launch its TV service by Christmas, despite resistance from content providers. The Wall Street Journal followed up with another report about how Apple was developing a cloud-based DVR that would store TV shows online and was designed so viewers could begin streaming a show minutes after it began airing live.
2015
The Wall Street Journal also claimed Apple was in talks with cable services like Comcast and Time Warner Cable, as well as companies that control television content. While all that sounds exciting, another three years has since passed without any confirmation from Apple, though we are starting to see more and more reports about an Apple TV subscription TV service, such as this Re/code one from February 2015.
According to industry executives who spoke to Re/code, Apple was once again in talks with television programmers over deals for its web-based TV service. Apple wants to offer custom television packages that can be streamed over the internet. These packages would include channel bundles from participating content providers as well as content delivered by Apple - and everything would have Apple's interface.

The latest round of reports sound even more promising. According to The Wall Street Journal, Apple has been in talks with programmers, such as CBS, 21st Century Fox and The Walt Disney Company, to launch a subscription-based streaming TV service that would have about 25 channels. The New York Post has also weighed in, claiming Apple has been in talks with Disney, CBS, Fox, and Discovery for content partnerships.

The New York Post also said Apple plans to share viewer data, which might include information like demographics and what's being watched, to help programmers target advertising to Apple TV customers. In other words: it appears as though Apple finally got some content providers on board by promising to give them access to customer data in return.
According to Re/code, Apple wants to launch its TV service this autumn. The Cupertino-based company also wants networks to shoulder the responsibility and financial burden of the streaming infrastructure associated with its TV service, while it will focus on the hardware and software end.
Re/code pointed out that such a situation wouldn't be very different from the channels currently on Apple TV; rather than have Apple support and pipe content through third-party apps, most major networks handle their own streams and push them to the Apple TV set-top box.
Another recent report from Re/code claimed NBC and parent company Comcast have not been part of any recent negotiations with Apple, mostly because Apple has not approached Comcast about a partnership. Rumours have therefore suggested NBC's absence from Apple's TV service is due to a falling out between Apple and Comcast.
Comcast revealed in March via a letter sent to the Federal Communications Commission - which was a response to a filing from Stop Mega Comcast (a group that's opposed to a Comcast-Time Warner merging) - that Apple had not even approached NBC for a content deal, but it is not clear why.
Apple and Comcast likely have attempted to negotiate a deal in the past, which The Wall Street Journal has suggested, and it's been said that those talks failed because Comcast wanted to focus on its own X1 web streaming platform.

What might the TV service actually feature?

Content
Thus, if all the latest rumours are true, Apple's TV streaming service will basically offer up a package of 25 bundled channels. The package might cost up to $40 per month, but you'll have programming from CBS, 21st Century Fox, The Walt Disney Company, and Discovery. The service therefore sounds like it'll be similar to Sling TV or even PlayStation Vue; you'll pay a monthly fee in order to watch certain channels anywhere.
The New York Post claimed Apple isn’t in talks with Comcast-owned NBCUniversal to include the broadcast network or other NBCU channels in its package. 9to5Mac said NBC is instead developing an app for set-top boxes and consoles. The network wants to launch its app in the second half of this year. You'll likely need to sign in with your cable provider credentials to live stream local NBC affiliates, play full episodes, etc.
Interface
Keep in mind Apple recently announced an exclusive partnership with HBO to offer HBO Now, the premium cable channel's first subscription service outside of a cable provider. In order watch HBO's entire catalogue of shows and films through the app, you'll need to pay $14.99 per month. The service will launch on 10 April, and it will be exclusive to the Apple TV, iPhone, and iPad for three months.
It's therefore safe to assume that the Apple TV will continue to offer a version of the current interface we now know. Alongside iOS 8, Apple released new software for Apple TV that included a redesigned interface. It made the set-top box's interface look much more like iOS 7, Apple's version of iOS that released for iPhone and iPad in 2013. Although it was not a very dramatic overhaul, the design became more bright and flat.
The current user interface used in the third-generation Apple TV features a rectangle tile interface. The tiles serve as app-like buttons or channels to Apple's streaming services, such as iTunes Radio and iMovie Theatre, as well as third-party services like Netflix. Going forward, we can imagine Apple adding a new tile that'll give you access to its package of 25 channels, but that's not confirmed.
Most reports concerning Apple's TV service have agreed the it will sport the company's design vision. Whether the TV service is an Apple TV app or part of a complete Apple TV overhaul, you can be sure the interface (or interfaces) will be developed and maintained by Apple.
DVR
If you look at really old rumours, such as the ones referenced above, Apple might not only offer a subscription package of channels, but also a cloud-based DVR feature that is able to store TV shows online and begin streaming shows minutes after they began airing live. There's not much news going around at the moment about such a feature, but it's something still worth noting.
Live programming from local TV stations
So we know Apple's TV service will involve offering TV subscriptions over the web, but according to a report in May from Re/code, it'll also include widespread access to live programming from local TV stations.
Apple wants to provide US cities with programming from their local broadcast stations, which will make it standout when compared to Sony and Dish’s Sling (they offer either none or very limited local programming in a handful of cities). But this plan has reportedly complicated negotiations with the broadcast TV networks.
Broadcasters don’t own all their local stations, and instead, they're affiliates or under a franchise system, meaning Apple and broadcasters will need to get the rights to show local programs and commercials. Also, since Apple would be providing digital feeds, broadcasters would need to build new streaming infrastructures.
Re/code has speculated Apple won't be ready to launch its web TV service until autumn. The company is not facing any technical issues, but rather it needs to iron out agreements and money details. When the TV service finally does launch, Apple will use its marketing power to promote it and shore up new revenue streams.
And finally, Re/code said Apple's live programming will be made available and streamed to millions of Apple devices with a screen - not just the Apple TV.

What does Gene Munster have to say?

Oh, Gene Munster.
He's the Piper Jaffray financial analyst who has been predicting an Apple TV set for years. He's largely a laughing stock now, but that hasn't stopped him from jumping on the latest TV service news and linking it to an Apple TV set:
"We believe that this possible content package would remove a significant hurdle to Apple launching a standalone television," said Munster. "While recent media reports question Apple’s interest in an actual television, we continue to believe it is the most logical next area of focus."
Yup.
So maybe 2015 will finally be the year that we see Apple unleash an Apple TV set with a subscription package and DVR-like functionality. Or maybe this is all nonsense, and Apple is putting all its energy toward an electric-powered vehicle.

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