CBS Turned Down Apple Television Deal

Rumours of an Apple television are refusing to go away, and now a news report reveals that Apple has been looking into streaming TV, too.

CEO of CMS, Les Moonves, is reported to have said in an earnings call that CBS had decided against joining an Apple TV service because it was based on an ad split.

Gigaom is reporting that Moonves revealed the Apple TV deal during last weeks' quarterly earnings call, and adds that while speculation about an Apple television has been around for some time, no evidence existed of content providers being involved until now.

The website speculates: "The decision not to join the effort follows CBS's philosophy of getting paid upfront licensing fees for syndication of its content online, as opposed to partnering on revenue-sharing agreements.

"It's one reason, for instance, why CBS never followed ABC, Fox and NBC in joining Hulu, and why it seems unlikely to do so in the future."

Since the iPod and iTunes, Apple has always strived to combine hardware, software and content; it would be logical to assume that an Apple television would not only be hardware, but also combine software and, crucially, content into one package.

Over the past year CBS has embraced the film streaming revolution and has formed partnerships with Netflix and Amazon which have generated huge profits. Gigaom said: "[last week] Moonves said CBS was receiving 'hundreds of millions of dollars' from streaming providers like Netflix, Amazon and Hulu, and that there were potentially more deals in the works."

CBS presumably feels comfortable without offering its business to Apple, who in turn will be unlikely to announce a television with streaming services until the majority of content providers have signed up.