Why Apple Is Delaying Its Streaming Service

Recent reports have suggested that although Apple Inc. (NASDAQ: AAPL) may launch a new version of Apple TV at a media event in September, the company has delayed the launch of its video streaming service.

Brett Molina, tech editor at USA Today, was on CNBC last Friday to discuss the reasons behind delaying its TV service.

Why The Delay?

"I think the big thing, and we have seen this in reports, is that Apple has had issues negotiating deals with some of the networks," Molina began. "A lot of the reports have suggested that this live TV service will bundle in local channels and a few other cable channels in one package."

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He continued, "And the big problem that Apple has had is just negotiating these deals and getting the rights to have this content. And without a good selection of channels to choose from, it's going to be hard for them to really go all in with this new service."

Not Too Many Competitors Yet

On whether Apple is refraining from entering the streaming market because they are late to the game, Molina said, "Yeah, we have seen a lot more networks talk about unbundling their own packages. We have seen HBO and Showtime, for example, recently launch their own standalone apps. There is a new budding area where you have these bundles with 20 to 25 channels that cord-cutters can pick up.

"DishTV, for example, introduced Sling earlier this year. You also have PlayStation View from Sony, which is available in select markets. So, you don't have too many competitors in that zone just yet. And the sooner Apple can get out with their own service, the better," Molina concluded.