
Apple Reportedly Working On an Online TV Service 87
An anonymous reader writes: According to a Wall Street Journal report (paywalled) Apple is in negotiations with media companies to develop an online TV service. The service will include a bundle of roughly 25 channels, so less popular channels will have a very difficult time fighting for a spot. Most major networks should be present, although NBC's participation is dubious because of its ties to Comcast, which would be in direct competition with Apple's service. "If Apple can offer a comprehensive, albeit slimmed-down, bundle for $30 to $40 a month, that could force distributors to cut prices or eat into margins to retain subscribers. At Comcast, for example, average video revenue per user should be about $79.45 in 2015, according to UBS. Meanwhile, its programming costs per average subscriber should be about $39.60. Those costs may need to rise. That roughly 50% gross margin looks vulnerable."