Future online TV subscriptions from Apple or YouTube could potentially cost $40
Who are the mysterious “new entrants” supposedly on the verge of entering the
Over the past few months, executives at major media companies including Time
Warner Inc., Walt Disney Co., 21st Century Fox, and Viacom Inc., have been
teasing the idea that several new entrants may be eagerly pursuing deals to
carry their channels on new online pay-TV services. During earnings calls last
week, Viacom and Disney executives mentioned such players as a potential area
of new growth to assuage investor fears about declining U.S. pay-TV subscribers.
But investors shouldn’t get too excited just yet.
New Web video services are being explored by companies including Apple,
Alphabet Inc., YouTube, Amazon.com Inc., T-Mobile US, and AT&T, according to
people familiar with the companies’ plans, but none of them seem prepared to
launch imminently and talks aren’t advanced. All of these companies have held
talks with big media companies of late about licensing their channels or
programming to launch a TV offering delivered over the Internet, these people
say. Representatives for the companies declined to comment for this article.
Many of these players would like to deliver a subscription pay-TV package that
includes the most-viewed networks—a dozen or so popular channels, including
broadcasters and some cable networks—for a price that is between $24.99 and
$39.99, one media executive close to the negotiations said.