Apple is targeting April, or early May, to launch its new video service in the US, but Netflix won’t be a part of it and HBO is in doubt, according to CNBC’s Alex Sherman.
Apple is in the final stages of preparing its new streaming video service, which will feature free original content for device owners and a subscription platform for existing digital services. Apple is reportedly committing on $1 billion on originals.
However, according to the report, Netflix will not b e a part of it, and HBO’s participation is also in doubt.
The main reason for the reluctance of these premium content providers seems to be disagreement about data sharing and revenue splits. Apple is known for demanding significant commission on services that are sold via its various platforms and it looks like iOS TV will not be an exception.
Apple is pushing for a 30 percent cut on every customer that subscribes to an over-the-top video service through its streaming service, three of the people said. Currently, Apple takes a 15 percent cut on revenue from customers that sign up to HBO Now, Netflix, and other streaming apps through the App Store, two people said.
Lions Gate’s Starz; CBS, which owns Showtime; and Viacom are expected to offer subscription streaming services on the Apple platform, according to people familiar with the matter.