In This Article:
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Apple is targeting April to debut a new streaming product that will include original content free for Apple device owners and a platform to subscribe to other digital media services.
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HBO hasn't signed on to the service due to a disagreement over revenue sharing with Apple.
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Netflix and Hulu aren't expected to be a part of the "Channels" service.
Apple AAPL is in the final stages of preparing its new streaming video service, which will feature free original content for device owners and a subscription platform for existing digital services. But don't expect Netflix NFLX to be a part of it, and HBO's participation is also in doubt, according to people familiar with the matter.
Apple is aiming to launch service in April or early May. It will allow customers to sign up for existing digital streaming products and watch them in the iOS TV application, similar to Amazon's Prime Video Channels . Apple wants to simplify the viewing experience for those who watch video on their mobile devices by housing content in one application instead of a variety of company-specific apps.
Lions Gate LGF.A 's Starz; CBS CBS , which owns Showtime; and Viacom are expected to offer subscription streaming services on the Apple platform, according to people familiar with the matter, who asked not to be named because the discussions are private.
HBO may join its premium network brethren but isn't as far along in discussions with Apple, one of the people said. Apple hasn't offered HBO the same terms that Amazon AMZN offered, said the person.
While the exact disagreement between Apple and HBO isn't known, media companies have been concerned about data sharing and revenue splits as Apple tries to aggregate existing services in new ways. For instance, The Wall Street Journal reported Tuesday that Apple is pushing to take nearly 50 percent of revenue derived from a new subscription news service it's planning to launch later this year.
Apple is pushing for a 30 percent cut on every customer that subscribes to an over-the-top video service through its streaming service, three of the people said. Currently, Apple takes a 15 percent cut on revenue from customers that sign up to HBO Now, Netflix, and other streaming apps through the App Store, two people said.
Netflix and Hulu aren't part of Amazon Prime Video Channels and aren't expected to be a part of Apple's product either, according to people familiar with the matter.
Spokespeople at Apple, CBS, HBO, Hulu, Netflix, Starz and Viacom declined to comment.