Apple's 'Hard-Nosed' Negotiating Tactics Leading to Trouble in Television Market

Apple's "assertive" negotiation tactics have made it difficult for the company to establish deals with cable providers and networks, reports The Wall Street Journal, stymieing its efforts to build a more robust television platform.

According to The Wall Street Journal, Apple started talking with the Walt Disney Company in early 2015 about getting Disney-owned content onto its then-planned streaming television service, but Apple executives, iTunes chief Eddy Cue in particular, made demands networks were not prepared to meet.

appletvappstore

In particular, Apple wanted to freeze for several years the monthly rate per viewer it would pay to license Disney channels. TV channels usually get annual rate increases and rely on them to fuel profit growth.

Disney balked. Similar talks with media giants that included 21st Century Fox Inc. and CBS Corp. also stalled.

Apple sees TV as a way to push further product growth, but persuasion tactics that have worked in the mobile phone and music industries aren't working in the television industry. Content providers are reluctant to agree to Apple's terms because it would compromise traditional revenue streams. As The Wall Street Journal points out, inking a "sweetheart" deal with Apple could lead to traditional cable distributors demanding similar deals.

Over the last several years, Apple has made several attempts to enter the television market, seeking deals with Time Warner, Comcast, and other providers, but nothing has panned out. In one instance, Apple wanted full on-demand seasons of hit shows and a recording feature that would include ad-skipping in newly aired shows, something cable executives were surprised by.

Apple sought payments of $10 a month per subscriber from the cable providers and refused to rule out seeking an even higher share of each monthly subscription in the future, according to people involved in the talks. It also wanted users to sign in with Apple IDs, even though Comcast and Time Warner Cable would handle billing and customer service.

Up until last year, Apple was still in talks for a streaming television service that would bundle several popular live channels and on-demand television at a price point of approximately $30 per month, but Apple reportedly put the project on hold after being unable to establish the necessary deals because content providers were reluctant to unbundle their channels. Cue, who leads most of the deals, is known for his "hard-nosed" negotiating style and refuses to settle for less than what Apple wants.

Instead, Apple has shifted towards positioning its Apple TV set top box and the tvOS App Store as a platform to allow networks to share their own original content. Apple is also following in the footsteps of Netflix and Amazon Video with original programming aimed at promoting services like Apple Music and the App Store.

Three shows are in the works: a dark semi-autobiographical drama starring Dr. Dre called "Vital Signs," a reality series that follows App Store developers called "Planet of the Apps," and a music-based reality show that's a spinoff of "Carpool Karaoke."

Related Roundup: Apple TV
Buyer's Guide: Apple TV (Don't Buy)

Popular Stories

iOS 26

iOS 26.1 Coming Soon: New Features for Your iPhone and Release Date

Monday October 27, 2025 7:55 am PDT by
The upcoming iOS 26.1 update includes a handful of new features and changes for iPhones, including a toggle for changing the appearance of the Liquid Glass design, "slide to stop" for alarms in the Clock app, and more. Below, we outline key details about iOS 26.1. Release Date Given that Apple has yet to seed an iOS 26.1 Release Candidate, which is typically the final beta version, the...
iOS 26

6 New Things Your iPhone Can Do in iOS 26.1

Wednesday October 29, 2025 4:22 am PDT by
Apple is about to drop iOS 26.1, the first major point release since iOS 26 was rolled out in September, and there are at least six notable changes and improvements to look forward to. We've rounded them up below. Apple has already provided developers and public beta testers with the release candidate version of iOS 26.1, which means Apple will likely roll out the update to all compatible...
maxresdefault

Apple TV 4K Could Still Launch Before 2025 Ends: All the Rumored Features

Monday October 27, 2025 4:51 pm PDT by
Apple is designing an updated version of the Apple TV 4K, and rumors suggest that it could come out sometime in the next couple of months. We're not expecting a major overhaul with design changes, but even a simple chip upgrade will bring major improvements to Apple's set-top box. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up all the latest Apple TV rumors. ...
iOS 26

Apple Seeds iOS 26.1, iPadOS 26.1, and macOS Tahoe 26.1 Release Candidates

Tuesday October 28, 2025 1:07 pm PDT by
Apple today provided developers and public beta testers with the release candidate versions of upcoming iOS 26.1, iPadOS 26.1, macOS Tahoe 26.1, tvOS 26.1, watchOS 26.1, and visionOS 26.1 updates for testing purposes. The RCs betas come a week after Apple released the fourth betas. The new betas can be downloaded from the Settings app on a compatible device by going to General > Software...
M6 MacBook Pro Feature 1

M6 MacBook Pro: Release Date, Pricing, and What to Expect

Monday October 27, 2025 9:15 am PDT by
Apple this month refreshed the 14-inch MacBook Pro base model with its new M5 chip, and higher-end 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips are expected to follow in early 2026. However, these machines will represent the final update to the current design, with Apple reportedly developing a completely new version of the MacBook Pro packed with next-generation hardware...
iPhone 17 Pro Cosmic Orange

8 Reasons to Wait for Next Year's iPhone 18 Pro

Thursday October 30, 2025 4:42 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
macos tahoe

Here Are Apple's Release Notes for macOS Tahoe 26.1

Tuesday October 28, 2025 1:21 pm PDT by
Apple today provided developers and public beta testers with the release candidate version of macOS Tahoe 26.1, which means the update will likely see a public launch next week. The release candidate includes notes on what's in the update, so we have a full picture of the new features that Apple has included. macOS Tahoe 26.1 adds AutoMix support over AirPlay, improved FaceTime audio...
ipad mini 7 feature blue

OLED iPad Mini: Release Date, Pricing, and What to Expect

Wednesday October 29, 2025 7:13 am PDT by
Rumors are stoking excitement for the next-generation iPad mini that Apple is reportedly close to launching. So what should we expect from the successor to the iPad mini 7 that Apple released over a year ago? Read on to find out. Processor and Performance Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to...
iPhone Car Key Kia

Another Vehicle Brand Gaining iPhone Car Keys Support

Tuesday October 28, 2025 5:27 am PDT by
Apple is preparing to bring support for its digital car key feature to Jetour vehicles, according to evidence uncovered on Apple's backend by MacRumors contributor Aaron Perris. Introduced in 2022, Car Keys allows an iPhone or Apple Watch to unlock a vehicle through the Wallet app. A digital version of a car key is stored in Wallet, and unlocking can be done by holding an Apple Watch or...

Top Rated Comments

Rogifan Avatar
121 months ago
I thought Eddy Cue had this reputation as a master negotiatior. Seems like that was a bunch of BS. Without Steve Jobs to close the deal Cue is worthless.
Score: 32 Votes (Like | Disagree)
bandalay Avatar
121 months ago
Cue is Apple's services boat anchor. Beats? iTunes? iBooks? TV?

All fiascos. Time to shake things up.
Score: 21 Votes (Like | Disagree)
jscooper22 Avatar
121 months ago
Negotiating is a different game without your Reality Distortion Field Generator, huh?
Score: 18 Votes (Like | Disagree)
Col4bin Avatar
121 months ago
Apparently Cook and Cue don't share the same "je ne sais quoi" as Steve Jobs. (But, we all knew that already.)
Score: 15 Votes (Like | Disagree)
Stella Avatar
121 months ago
Apple need to compromise, instead of having things their own way. They may have actually got a TV product out.

So.. Apple wanted unbundled content, only for themselves to bundle content back up again. The customer does not want bundled TV, they want to be able to pick and choose what they want.
Score: 13 Votes (Like | Disagree)
DTphonehome Avatar
121 months ago
Bottom line, cable execs care about the bottom line. They aren't going to risk slaying the golden goose by handing control to Apple. Doesn't matter if Apple can provide a better user experience. Until their profits are so diminished by piracy that it threatens their business model (which is still a fair ways off), cable companies are going to make token efforts toward user convenience.
Score: 11 Votes (Like | Disagree)