After years of trying to get in the TV game, Apple is getting closer to going all in on a television service that will give consumers a cheaper alternative to cable and satellite providers.
Apple’s forthcoming over-the-top TV service is rumored to price out at around $30 to $40 a month vs. a typical pay TV bundle of $92. I know it’s a shock to get a deal from a super-premium brand like Apple. But the market for pay TV is so overpriced, there’s room for even an Apple to come in at a much lower price and still make big profits!
Apple to challenge cable and satellite incumbents
Bloomberg reports that Apple’s television service will launch later this year with some 25 channels. ABC, CBS, Fox, Discovery, and major content provider Viacom are reportedly in talks with Apple to have their channels featured in the bundle.
This Apple announcement follows on the heels of Sling TV. Dish has a new streaming product called Sling.com that won’t require a cable or satellite subscription. For $20 a month, you’ll get a limited number of channels, but here’s the thing…the Sling offering includes ESPN! That channel alone has prevented a lot of people from cutting the cord in the past, so this is big news.
With Sling, which is targeted at 18-34 year olds, you can stream to any device and watch TV when, where, and how you want without paying for overpriced channels you don’t want. The same will be true of the Apple television offering.
Are you wondering if you could benefit from any of these new over-the-top services? If you are a multi-person household, the traditional package from cable or satellite is probably a better deal for you than one of these services you get digitally on your devices. But that having been said, more than half of American households would benefit from dumping the cable or satellite monster.
Remember, the average cable bill is $92 a month, according to the latest estimates I’ve seen. Soon the average will break $100. Cable rates are rising at 4 times the rate of inflation!