Apple will delay the launch of its online TV service to at least until 2016 after negotiations with major television networks stalled.
Bloomberg, citing people familiar with the company's plans, reported that Apple was now aiming the launch of its online live TV for 2016, shifting from initial plans to introduce the service in 2015.
The sources noted that Apple's talks to license programming from TV networks such as those owned by CBS and 21st Century Fox were progressing slowly, leading to the delay. In addition, the company does not have the computer network capacity to ensure good viewing experience for consumers.
Apple was planning to announce the service at a 9 September event in San Francisco along with a more powerful version of its Apple TV set-top box. The much-awaited plan has now been scrapped. Apple customers still need to depend on a cable or satellite TV subscription or an antenna to watch live network television.
Apple is also facing problems with regard to the pricing of its content. The company wants to offer a package of popular channels at $40 per month – about half the average cable bill in the US. The company earlier successfully convinced music labels to sell music at prices as low as 99 US cents through its online stores.
Meanwhile, TV programmers want more money from internet-based services such as Apple than what they charge for existing cable and satellite TV providers. As a result, talks with CBS, Fox and NBC, owned by Comcast, have been stalled for the past several months, according to the sources.