According to a new report out of The Street, Apple has hit a snag in negotiations with Disney over the number of the latter’s channels it will include in its rumored TV streaming service.
According to the report, Apple is only looking to incorporate Disney’s core channels in its lineup in an effort to keep prices lower for customers. However, Disney is pressing Apple to include a most of its other channel offerings, such as ESPN2, ESPN Classic, and Disney Junior. From *The Street:
According to people with knowledge of the talks, Disney is pressing Apple to take most if not all of its channels, which include several channel spinoffs of its mainstays ESPN and Disney Channel, while Apple wants to take fewer channels in a bid to keep the price down for its service, which is expected to be launched later this year.
The report goes on to note that nailing down a deal with Disney is seen as an important step in offering a valuable service for potential cord-cutters:
The talks with Disney are important to Apple, according to one of the people, because Disney’s channels, which also include ABC Family, are considered essential for the young families and younger men who are among the most likely TV watchers to “cut the cord” and choose lower-priced Internet-based options to their cable or satellite services.
As an added point of interest, it’s important to note that Disney CEO Bob Iger also sits on Apple’s board, so it will be interesting to see if his presence has any effect on negotiations.
Apple is expected to announce its streaming TV service in June, with a launch set for September. Pricing for the service has also been rumored to land somewhere between $20 and $40 per month.