Apple To Launch Subscription TV Service? Cable Companies Watch Out - By: Paddy Chang

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If you had the choice of watching cable or using an itunes interface for all your tv needs, which would you choose?
Apple is pushing the idea to the TV and cable networks, pushing for a $30 per month iTunes subscription service allowing viewers to watch the same shows they currently watch on cable. And they are looking to launch in 2010.

Apple have in the past looked into video subscription services, but the idea has not been warmly received due to content providers beleiving they would lose viewers to more lucrative traditional advertising models. However, now that internet TV is booming, Apple may have more success this time.
Apple’s sales pitch to the networks is of course its mammoth user base currently sitting around 65 million iTunes account users who may just be persuaded to pay $30 a month for subscription content. content providers could find a new revenue stream in the digital space.
So far, The Wall Street Journal reports that none of the major media companies have agreed to a deal with Apple, the guessing is that if a company was to agree a deal it would be Disney. Steve Jobs is Disney’s largest shareholder and Apple and Disney have an existing content deal.
Its a good time for Apple to be pitching this idea. They have a large user base of 65 million iTunes users that are accustomed to monthly subscriptions and television viewing is getting ever more Internet based. If Apple plays its cards right, it could end up an online tv winner.

The latest report by Comscore shows that watching video on the internet viewing figures hit another record for September. The results were caused partly by TV season premieres.
Over 168 million U.S. Internet users watched online video during the month. Nearly 26 billion videos were viewed in September, as Google sites accounted for more than 40 percent of videos viewed online by Americans.
Google sites continued to rank as the top U.S. video property in September with nearly 10.5 billion videos viewed. YouTube accounted for 99 percent of all videos viewed at Google properties.
Hulu did well, it came in second showing a 20% rise from August figures with 583 million (2.2%). Next was Fox Interactive Media with 547 million videos viewed (2.1%) and Viacom Digital with 513 million (2%).
Other September Online TV Facts
Leading video ad networks by actual delivered reach were: Tremor Media Video Network (19.9 percent penetration of online video viewers), BBE (16.3 percent penetration) and BrightRoll Video Network (14.9 percent penetration).84.8% of the total U.S. Internet audience viewed online video.The average online video viewer watched 9.8 hours of video.125.5 million viewers watched nearly 10.3 billion videos on YouTube.com (82.4 videos per viewer).45.6 million viewers watched 424 million videos on MySpace.com (9.3 videos per viewer).The average Hulu viewer watched 15.1 videos, totaling 1 hour and 32 minutes of videos per viewer.The duration of the average online video was 3.8 minutes.More than 168 million viewers watched an average of 154 videos per viewer during the month of September. Google sites attracted more than 126 million unique viewers during the month (82.7 videos per viewer), followed by Fox Interactive Media with 58 million viewers (9.4 videos per viewer) and Yahoo sites with 57 million viewers (7.5 videos per viewer).

Tremor Media was the top video ad network with a potential reach of 73 million viewers, or 43.3 percent of the total viewing audience. YuMe Video Network ranked second with a potential reach of 66 million viewers (39.4 % penetration) followed by Broadband Enterprises (BBE) with 63 million viewers (37.5%).
Interestingly, even though it was it second place, the Hulu share which was 583 million online videos shown throughout September only accounted for 2.2% of the online video market. Which does not sound so impressive.
So Youtube still blows everyone away, and even though Hulu have cemented the second place, who knows what the situation will be this time next year.

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