According to a new report, it wasn't pricing that caused Apple to walk away from negotiations with content providers over its rumored streaming TV serivce, but bundles. Originally reported to be debuting with the new Apple TV, Apple is said to be pushing the idea of small bundles of television, with a basic service having just over a dozen channels, at a price of no more than $30 per month.
A smaller initial lineup keeps the price relatively low, and allows customer to expand it how they wish, adding individual or small groups channels later. But companies seem to think that their channels should all be grouped.
Apple media boss Eddy Cue has proposed selling additional tiers of programming, like a sports tier, on top of its core service. But he has been insistent that Apple's base package be limited to a small group — both because that's the way to keep the price low and also because he thinks that's what customers want.
Apple was initially reported to have walked way from negotiations following comments from CBS CEO Les Moonves. While Apple is said to still be hopeful that a deal can be negotiated, for now, they are apparently focusing on cultivating great apps for the Apple TV.