Apple proposes a new version of its Apple TV set top box.Its old version was launched in 2007. It brings video and music from the Internet to a television. It wants to tap the young audience who watch video using online services such as Netflix and Google’s YouTube. Apple wants to tie up with producers who can produce exclusive shows for Apple TV. It wants to obtain premium content for a live TV service. Apple might fund programming. It has taken steps into video production. It support games and apps made by third party software developers. Developers can now write for a 40 inch screen.

Apple TV still lacks a bundle of TV programmes. TV broadcast and digital rights are incredibly complicated. It is tougher than films. There is snarl of contracts and agreements. Apple TV requires TV shows to succeed, especially live sports. In TV shows there are local affiliates with which a broadcaster will have to negotiate for rights to some shows. Digital rights could be held by multiple parties for a single show. Companies such as Apple must wait till these contracts expire. There are distributors whose agreements must expire. The deals are to be negotiated afresh in different countries. A decade ago, there were no templates available for digital deals. There were no complexities such as streaming rights and union negotiations. These templates are now available, and the rights to content can be obtained. The price tag is, however, huge. When Apple bargained for iTunes with the music companies, the bargaining position of music companies was weak. However, the bargaining position of the TV world is strong. As many in the US watch TV via broadband, there is no urgency to do contract with Apple.

Apps can be used to bypass some of these rights issues and high costs. Apple is spared the negotiations for content if a local broadcaster with rights to the shows builds an app. App-centric mobile devices may overtake traditional TV. For the time being, YouTube Stars and shopping apps are not enough for Apple TV. Traditional programming is still the holy grail.