Apple's much rumored TV subscription service has a new possible feature being discussed -- commercial skipping. Now, this obviously would not work with live TV, but with streaming of previously aired shows similar to what Hulu provides. It is not been made clear what networks might be in discussions, but having a target audience being able to skip the main source of revenue is not gong over lightly.
Apple Insider?comments on some of the details that may surround this effort:
According to the report, Apple recently informed networks about the "premium" version of the as-yet-unannounced service, which would theoretically have users of the proposed service pay Apple for the ability to skip ads.
One issue that immediately comes to mind is prime time advertising. Networks rely more from revenue from the evening time slot shows then from daytime re-runs and talk shows. Would a simple premium service commitment from Apple be enough to off-set the potential ad views?
If the shows offered were all simply prime time shows, then perhaps Apple could negotiate a flat rate into premium subscription service.
An argument in favor of Apple desire to allow consumers to skip commercials lies with the popular DVR box. Millions of people rely on simply recording shows to watch at a later more convent time, so why sit threw commercials if you can simply fast forward? Apple could negotiate some of this lost revenue back to the networks in the form of a premium ad-skipping service.
This is not unlike numerous apps on the Apple App Store. Thousands of applications are free, however revenue is provided by Apple's iAd network. By simply paying a in-app purchase for the App, you can remove those pesky ads.
Erik Lokens is a tech blogger for UNIEA|UNITE. He blogs regularly about Apple and Android devices, and writes a daily column on the latest news surrounding the most highly anticipated, rumored smartphones and tablets on the market today.
Source: http://www.uniea.com/blog/239/apples-tv-service-may-offer-ad-skipping-report
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