Apple Struggling to Sign Media Companies for Streaming TV Service [REPORT]

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Citing unnamed sources, The New York Post says that media companies are unwilling to agree to Apple's terms over content packages and pricing. "We decide the price, we decide what content" is Apple's negotiating stance on the matter, says a source.

Little is known about the streaming service itself, which Apple has not confirmed that it is working on. It's possible Apple is designing a service that would enable owners of iOS and Apple TV devices to purchase subscriptions to individual channels, similar to the way users can purchase subscriptions to newspapers and magazines via the Newsstand. Or Apple could bundle those channels together to create its own cable TV-like group subscription offering.

Currently, Apple allows users to purchase and download individual TV shows and movies through its iTunes Store. A streaming subscription service would accelerate users' access to video content, and put Apple into more direct competition with the likes of Netflix and Hulu Plus, as well as cable TV providers.

Apple has had great success in cajoling the music industry to agree to licensing options on its terms -- both with the iTunes Music Store and the iTunes Match service. The company has long struggled, however, to secure major deals with television and movie studios.

This struggle is not unique to Apple. In the past 12 months, increased competition in the subscription streaming space has shifted power from content distributors (i.e. Netflix, Amazon, Hulu Plus) and to the content owners themselves. The net effect of this battle over content is that securing content deals is more expensive than ever.

Rumors indicate that Apple might be unveiling its next-generation Apple TV along with the iPad 3 at a press event on Mar. 7. Perhaps we'll learn more about this rumored streaming service at that time.

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