Tech giant Apple is reportedly considering a premium TV service that would stream live cable TV programming and allow viewers to skip commercials.
According to former Wall Street Journal reporter Jessica Lessin, Apple would pay TV networks for each ad skipped by users:
In recent discussions, Apple told media executives it wants to offer a “premium” version of the service that would allow users to skip ads and would compensate television networks for the lost revenue, according to people briefed on the conversations.
...Apple wants to strike deals with cable companies like Time Warner Cable to allow cable subscribers to watch television using an Apple device as a set-top box and with a software interface designed by Apple.
Apple currently sells a $99 box for users to watch iTunes and web videos, but recently signed deals with HBO and ESPN, which may be part of Apple TV, noted Gigoam.com.
An ad skipping feature would put Apple TV in competition with DVRs and DirecTV’s AdHopper.
However, TV networks and cable channels have made income via advertisers for decades, so that business model may be hard to change.