Apple’s New Ad-Skipping Technology For TV

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It’s no secret that Apple Inc. (NASDAQ:AAPL) is looking to rework how people view television. Of course the idea is nothing that new with companies like Hulu and Netflix Inc (NASDAQ:NFLX) already providing similar streaming options for its customers, the latter of which counts 36 million subscribers each month as of their last earnings report.

Apple's New Ad-Skipping Technology For TV

Apple In Talks With Broadcasters

Apple Inc. (NASDAQ:AAPL) has been in secret discussions with a number of broadcasters looking to build a library of content for both  live channels and streaming content. Despite the largely held belief that Apple has been making progress in this arena, neither CEO Tim Cook nor SVP Eddy Cue have been forthcoming on the progress they may or may not have made.

Apple To Hire Hulu Exec

Additionally, it’s largely believed that Apple Inc. (NASDAQ:AAPL) is set to hire Hulu executive Pete Distad to assist in content negotiation. While that has yet to be confirmed, many believe that Distad has already been involved in discussions with Time Warner.

Other rumors had CEO Tim Cook and Eddy Cue in discussions with cable company executives in Sun Valley last week. When asked for comment, Senior Vice President Eddy Cue simply responded with, “There are cable companies here?”

Apple’s Ad Skipping Tech For TV Service

Now its coming to light through a report by Jessica Lessin, that Apple Inc. (NASDAQ:AAPL) has been granted a patent that would allow for “Ad-Skipping” in premium content that it plans to offer in the near future as its foray into TV gets closer and closer.

According to the report:

In recent discussions, Apple told media executives it wants to offer a “premium” version of the service that would allow users to skip ads and would compensate television networks for the lost revenue, according to people briefed on the conversations.

Consumers, of course, are already accustomed to fast-forwarding through commercials on their DVRs, and how Apple’s technology differs is unclear.

It is a risky idea. Ad-skipping would disrupt the entrenched system of television ratings—the basis for buying TV ads. In fact, television broadcasters sued Dish Network when it introduced similar technology last year.

Conjecture around Apple Inc. (NASDAQ:AAPL) is nothing new and while Ms. Lessin appears to be a formidable writer, there is no reason, outside of the patent, to believe that she has stumbled across anything that shouldn’t be taken with a grain of salt until Apple Inc. (NASDAQ:AAPL) makes an announcement of its own.

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