Apple is in the final stage of preparing its new streaming video service, featuring free original content for device owners and a subscription platform for existing digital services. But Netflix does not expect to be part of it, and the participation in HBO is also in doubt, according to people familiar with this matter.
Apple encourages a 30 percent cut in every subscriber subscribed to an over-the-top video service through its streaming service, three of whom said. Currently, Apple takes 15 percent of revenue cuts from customers who signed up with HBO Now, Netflix, and other streaming apps through the App Store, said the two men.
Netflix and Hulu are not part of Amazon Prime Video Channels are not expected to be a part of Apple's product either, according to people familiar with these things.
Spokespeople in Apple, CBS, HBO, Hulu, Netflix, Starz and Viacom have been denied to comment.
Apple has jostled in traditional media companies for years over getting access to their content. CEO Tim Cook saw Apple's new offer in conference call earnings last month.
"We see a huge change in customer behavior that is happening now and we think it will accelerate as the year goes through the destruction of the cable bundle. I think that's likely to happen faster This year's speed, "Cook says. "We have participated in the original world of content and have signed a partnership with Oprah for many years, but now I'm not ready to extend the conversation beyond that point. We have accepted some of the great people we have so much confidence in, and we'll have something more about later. "
Apple deal with Oprah Winfrey and other major entertainment names like Reese Witherspoon and Steven Spielberg will provide Apple device owners access to both movie and TV content for no additional fees. Apple plans to offer its original content free of charge to device users, first reported by CNBC in October. Apple plans to spend nearly $ 1 billion on originals last year, the Wall Street Journal reported. Apple agrees with many films and series, including animated features, comedy, reality shows and dramas, most of which are accrued by Macworld here.