Apple, Inc. (NASDAQ: AAPL) latest proposal includes wanting to sell consumers a premium TV bundle, which combines HBO, Showtime and Starz. Apple already sells each of those channels independently. However, it has contacted the three networks about bundling them into a single package, the traditional pay TV operators from time to time.
The difference is that conventional pay TV operators, like Charter, typically require consumers to subscribe to a basic level of TV channels before they will sell them to a premium bundle. Apple could sell the bundle as a separate product, delivered via its iOS devices and its Apple TV set-top box.
Apple does not have a bundle deal set up with any of the premium networks, industry sources say. Reps from HBO, owned by Time Warner, and Showtime, owned by CBS, refused to comment. Reps from Starz, owned by Lionsgate, and Apple did not reply to requests for comment. Apple currently sells HBO for $ 15 a month, Showtime for $ 11 a month and Starz for $ 9 a month.
Apple has publicly announced that it has halted trying to sell a conventional bundle of pay TV channels over the internet, even the others have begun to do so. Eddy Cue, Apple's media boss, has mentioned traditional TV networks are not willing to make the concerns he wants to sell to TV package. But a premium bundle would be much easier, since it already sells those networks individually. The main question would be the price and the percentage of revenue the network owners would want.