Apple's plan is to launch a service next year, The Wall Street Journal said on Tuesday. Currently, the company is pushing TV networks to sign licensing deals, but it is unclear whether any of them have signed on yet.
Ad-financed streaming will dominate TV distribution over the Internet going forward, but there will also be room for paid services, according to Ingrid Salomonsson, media analyst at Swedish market research company Mediavision. Content and price will decide whether a service becomes a success or not -- after all, content is queen, Salomonsson said.
CBS is considering offering programs from both the CBS and CW networks, and Disney is doing the same for content from ABC and the Disney Channel, according to the Journal.
An initial bundle of programs from CBS, Disney and other networks would be sold as a "Best of TV" package, and would cost US$30 a month, according to the report.
An Apple spokesman declined to comment on the report.
The new video strategy is part of an overhaul the iTunes store. Apple recently acquired online music streaming company Lala, but was secretive about its plans, only saying that it from time to time buys smaller technology companies.
The TV push could also boost sales of Apple's TV box, which has been struggling compared to other Apple products.
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