Last Friday, it was reported by Reuters that Apple has been negotiating with the three-year-old movie streaming service provider EPIX. The news claims that the Cupertino-based company is dealing for the rights to stream content to its Apple TV set-top box.
“Apple, which now sells a $99 set-top box that hooks up to a television set and lets users stream online content from Netflix and the MLB channel, opened discussions with three-year-old EPIX, created by Lions Gate Entertainment Corp., MGM and Viacom’s Paramount Pictures.”
It is said that the negotiation would apply to Apple’s set-top box and upcoming content streaming devices. The company is expected to release a full-fledged TV product later this year or earlier next year. Launching of Apple TV is in line with their attempt to drive the company’s next growth phase, and to revolutionize the industry.
A Deal that is Unlikely to Happen
Despite the reports, the deal between the two companies is deemed unlikely to happen. EPIX still has an exclusive streaming agreement with Netflix, which pays $200 million per year to stream content to its 23.4 million US clients. The exclusive deal will run until September. Thus, it is unlikely that any deal before Apple unveils their planned TV set could be effective.
In addition, there is also the financial situation that could shake out for the media streaming service provider once Netflix losses its exclusivity and when Apple is added in EPIX’s media mix.
Moving Forward with a New Product
Apple is considered as the most valuable corporation because of its popular core products like the iPhone and iPad. But with the death of co-founder and former CEO Steve Jobs, it is expected that Tim Cook could take the company forward with a new product such as the long-time rumored Apple TV.
Last year, the company made a deal with Hollywood studios for movies and TV shows that it could bring to its own TV service. However, they were unsuccessful to secure it. EPIX, on the other hand, doesn’t have agreements with larger cable operators, but it has contracts with the Dish satellite service, Cox Cable and other cable operators.
Despite the rumors, the negotiation between EPIX and Apple remains preliminary. Although they didn’t come up with a deal yet, the allegation keeps on suggesting that Apple is continuing to push its attempts of securing content, as it aims to make a bigger footprint in the living room.
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