In a report released on Wednesday, tech news site Re/code’s Peter Kafka said that the streaming TV-related negotiations between Apple and content providers failed because of Apple’s insistence on a "skinny" bundle of channels --- a deal which the content providers did not agree to.
The negotiations -- which reportedly were stopped by Apple months back -- were being led by Apple’s content chief Eddy Cue, who wanted the company’s streaming TV package to be a basic streaming bundle which would include only a handful of channels, so that a low entry-level price point could be achieved by Apple.
Going by Kafka’s report, the base streaming TV package which Apple was pushing for would have comprised a “skinny” bundle of around a dozen channels, for which customers would have to pay less than $30 a month.
However, content providers, not willing to have their networks left out of the bundle, wanted that Apple’s streaming TV package should include all of their content, instead of just a few select channels.
According to Kafka, Cue offered content providers the option to sell additional tiers of channels – like a sports package – together with the “skinny” basic streaming bundle, but did not make efforts to compromise with them on offering more channels in the base package. But, content providers did not agree to offer just a small selection of channels from their content catalogs; and, as such, Apple was not able to work out a deal with content providers.