Apple Inc. has suspended plans to offer a live Internet-based television service and is instead focusing on being a platform for media companies to sell directly to customers through its App Store, according to a person with knowledge of the matter.
While Apple isn’t giving up entirely on releasing a live-TV service, its plan to sell a package of 14 or so channels for $30 to $40 a month has run into resistance from media companies that want more money for their programming, said the person, who asked not to be named discussing a prospective product.
CBS Corp. Chief Executive Officer Les Moonves said at a conference earlier Tuesday that Apple had put its live TV plans “on hold.”
The struggle highlights the difficulty new entrants face in trying to persuade media companies to overhaul the conventional pay-TV bundle, which costs about $85 a month. To break the logjam, Apple would either have to charge more, or the media companies would have to accept less.