During an earnings call, the CEO of CBS let slip that the cable network has no plans to bring streaming content to the Apple TV. Like Hulu, Apple doesn’t pay providers up front, but instead splits the advertising revenue—which isn’t how CBS is used to doing business. Although, for the end user, the point is moot: CBS has a streaming deal with Netflix, and Netflix content is available on the Apple TV. There could be an issue for Apple later on down the road if they plan to make the Apple Television set a reality and don’t want to depend on 3rd party providers.
“We — frankly, we don’t believe in them. We’re not going to go out and we’ve sort of — we’ve even been against joining Apple TV, which was an advertiser split. And these deals are significant in that we are getting guaranteed cash payment. We like operating on that basis. And as you said, we’ve been able to do deals worth hundreds and hundreds of millions of dollars on that basis. That is our position right now. Will we ever make a statement that, that never could happen? I wouldn’t right now because we don’t know how the world evolves, but I like the way we played our hand and getting this guaranteed revenue stream is a good way to go.”