Apple TV update a no-go this year after cable negotiations flop

September 6, 2012

Those anticipating some kind of announcement about an update to Apple TV or a dedicated television set will have to wait a bit longer.

Bloomberg has reported that we won’t be hearing any news about the Apple TV at Apple’s Sept. 12 iPhone 5 event or at their iPad Mini event planned sometime this October. The reason? Apple couldn’t come to terms with cable operators, stalling negotiations for the time being.

Apple has been in negotiations with a bevy of cable providers in an effort to offer “a brand new way to watch television.”

The idea was simple: Apple would collaborate with individual providers and let consumers use Apple’s user-interface control the content they watch from their specific provider. The deal would also allow users to digitally record television shows and send them over to a cloud that could be watched on an iPad or iPhone.

Apple was also rumored to release a dedicated television set that would solely provide cable service from AT&T’s and Verizon’s cable network.

From Bloomberg:

“In recent negotiations, the main stumbling blocks with cable companies have included a tussle for control over the software that determines the screen interface — the look and feel of the viewer’s experience, said people familiar with the discussions. That’s also what TiVo Inc. (TIVO) has been offering for more than a decade with its hard drive-equipped set-top box that allows viewers to easily record broadcasts and, more recently, stream Internet fare. TiVo’s growth, though, has been stymied by fierce resistance from cable TV providers.”

And of course, another disagreement between Apple and the cable providers is the box itself. By allowing Apple to tap into a cable providers content, that cable provider wouldn’t have to provide a cable box. Those cable boxes, while expensive, bring in a significant amount of money for cable operators, as users pay a monthly fee to rent them. According to the report, some cable providers would want the freedom to lease out the little black Apple TV boxes.

Apple was expected to announce some kind of Apple TV update this year, but it will likely be pushed to the first quarter of 2013.

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