Apple has an opportunity to completely change TV if it uses this model

Apple is getting ready to introduce a new television experience. Multiple sources say that Apple will soon debut a new streaming service that offers about 25 channels from the likes of ABC and Fox. We’re still not sure what Apple’s streaming service will look like, but it would be wise to take a cue from Netflix, one of the most popular streaming services out there, writes Business Insider’s Dave Smith. Apple doesn’t have Netflix, but it has its own secret weapon: iTunes. The iTunes Store has almost every new movie and TV show, but the major problem is that its pricing structure is downright medieval. Most new movies from the iTunes Store still cost around $5 to rent, and when you rent a movie, you have only 24 hours to finish it once you’ve started playing it.

But in the age of Spotify and Netflix, it’s all about being able to endlessly binge on streaming content at a fair, set price. So it’s time for iTunes to become less of a “Store” and more of a “Service”.

Dave Smith, in Business Insider

Compare that with Netflix, which lets you watch as many movies as you want, as many times as you want, at a much more reasonable price of $8 a month. It’s easy to see why Netflix is a clear winner in the streaming age. But let’s assume that Apple can do everything Netflix can, and then some, since it has much deeper pockets. Apple could persuade content makers and distributors to be paid a flat fee — probably higher than what Netflix, Amazon or Hulu Plus offers — to offer their movies and TV shows for a set period of time on its new streaming service. All that, plus live TV, could be a game changer.

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