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Negotiations Could Bring Paramount, MGM Movies To Apple TV

April 29, 2012

Apple is reportedly negotiating with Epix, a video streaming company backed by three prominent movie studios, to provide content for devices produced by the Cupertino, California based tech giant.

Reuters reporters Ronald Grover and Lisa Richwine, citing a pair of unidentified sources familiar with the talks between the two companies, said that the discussions would pertain to both the $99 set-top boxes currently produced by Apple — which connect to TV sets and stream online content from various sources — as well as a rumored Apple-branded television, expected late 2012 or early 2013.

Furthermore, Mashable reports suggest that Epix, which streams “relatively new content” from Lionsgate, MGM, and Paramount, could be releasing an app that could be used on all iOS devices, including iPods, iPhones, and iPads.

Grover and Richwine wrote that sources told them talks between Apple and Epix are in the “preliminary” stages and that the two sides are not close on a deal. Any agreement between the two, however, could be complicated between a deal between Epix and Netflix signed two years ago, under which the latter pays the former $200 million annually for the rights to stream movies to more than 23 million customers in the U.S.

“Isn´t this how Netflix gets a lot of its best and newest movies and such for streaming? It sure is, and it´s costing that company $200 million to do so, in an agreement that expires as soon as September of this year,” Mashable said. “Maybe Apple figures to get in on this action, perhaps even wresting exclusivity away from Netflix.”

“One thing´s certain: Apple´s success with music on iTunes hinged on agreements with record companies, and its success with an Apple TV set likewise depends on favorable deals with movie studios,” they added. “If Apple wins streaming exclusivity for the latest movies, perhaps even beating to market those residing in its own iTunes video stable, the company could prove to be a juggernaut in the HDTV world as well.”


Source: RedOrbit Staff & Wire Reports



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