Is Apple Netflix's Biggest Threat? $30 per Month Apple iTunes Subscription in Works?

Peter Kafka at AllThingsD discovered that Apple might be looking to compete with Netflix and Comcast with a $30 per month subscription iTunes TV subscription:

Apple (AAPL) isn’t tying the proposed service to a specific piece of hardware, like its underwhelming Apple TV box or its long-rumored tablet/slate device. Instead, the company is presenting the offer as an extension of its iTunes software and store, which already has 100 million customers.

A so-called “over the top” service could theoretically rival the ones most consumers already  buy from cable TV operators–if Apple is able to get enough buy-in from broadcast and cable TV programmers.

That’s a big if: Apple has told industry executives it wants to launch the service early next year, but I have yet to hear of a single programmer that has made a firm commitment to the company, which has tasked iTunes boss Eddy Cue with promoting the idea.

The future of TV is becoming very interesting. We're starting to see broadband TVs, low-cost subscription services, and lots of choices for consumers. I can see ditching cable TV and subscribing to Netflix, Hulu, and iTunes.

While Netflix has 11 million subscribers, don't forget that Apple has more than 100 million iTunes accounts that are linked to credit cards, so it'll be interesting to see what they offer next year, and how it will impact Netflix.

Comments

[jkdoug]

No way would I pay $30 a month for this when my Netflix is only $14 and I get unlimited streaming. Granted, not all of the content I'd want is available through Netflix streaming yet, but there's enough that I've already canceled my cable TV and now just watch Netflix movies and shows.

[Dan]

I'm happy to see that these services are drifting to the Internet. The more the merrier. Apple won't compete directly with Netflix on price or value, they'll have to try to tip the scales by obtaining exclusive content deals. Also, Apple has the power to further legitimize this type of service. Netflix should be less concerned than the cable companies.

[Kenny Johnson]

$30 is too much, but it's a good idea. The problem is that Apple needs to either a) offer their service to non-Apple devices, b) expand AppleTV to include more services, or c) offer a complete subscription package (movies + TV).

I can already watch a lot of TV for free on the internet. I don't want to have to buy a $250 box and pay $30/mo.

It's a great idea, they just need to fix it a little.

Something tells me the leak may have been purposeful so they can gauge potential customer reaction.

[david]

i'm kinda hoping this doesn't pan out. not because i dislike apple, but with their marketing team they could make their service very popular. Then the service providers will have to jack up broadband costs to offset losses & i'm back to paying them $70 a month.

After that i suppose Apple adds some content to justify price increases...meet the new boss same as the old boss...

[banter]

Send me a box to free to stream along with signing a 12 month subscription, unlimited viewing for all titles and I am in.

[tsrblke]

This really seems out of sorts for Apple. They refuse to sell subscriptions for things like music (even though that model is catching on.) Furthermore for this to work, apple would have to rid themselves of their closed garden approach to devices. Ultimately if all Apple can do is garner network support, it will flop, because at $30/month (plus the cost of Broadband) it won't be a value.
Value of couse was never what apple sold.

[Mr Nethead]

I would definitely think about it if they're going to offer closed captioning on their content.

[Burt]

iTunes may have 100M accounts linked to credit cards, but that doesn't translate to active users. Netflix charges my card monthly, whereas I haven't purchased anything from iTunes in several years. Nor do I intend to.

[Seth]

Netflix is definitely is becoming an irritant for Apple's media projects. And as Apple is not going to offer Netflix on its Apple TV in the next ∞ years or so, it seems like they want to get in on the game too.

But I would bet an incredibly large percentage of their active customers already use or are familiar with Netflix.

A dubious project for Apple.

[Drew]

I'm ok with waiting 1 business day to watch a tv show i need to catch up on than pay another $30 a month

[Edward R Murrow]

Depends on what the content is for $30. If everything is offered that I currently get with my cable provider, then $30 per month is darn cheap.

[Katie Jane]

I am not going to pay for *another* electronic item just to watch movies/shows with Apple. I hate Itunes and there is no way that I would pay that much money when Netflix is satisfying my need for entertainment. No deal, Apple.

[Sonya]

I think it would be a good idea if you can get your local channel + movies + music...this beat out the cable company who charge an arm & leg for really nothing. I would cut my cable off...but only if apple are going to have it unlimited. I love apple but they want to make a dollar on everything!!