The new software update for Apple TV enables users to subscribe to Netflix and MLB.tv directly from the device, using their iTunes account for payments.
This upgrade resembles Apple’s in-app subscription model on iOS that earns Apple a 30 percent revenue cut on magazine and digital service subscriptions.
For Netflix, this model could be used for their potential cable partnerships. “Most modern cable boxes would be capable of working with Netflix with an appropriate firmware and software update (or, cable companies could rent new Netflix-enabled boxes to those users who don’t already have Netflix built into all of their home theater devices), with the added advantage of offering TV content from one box,” Mashable suggests.
For Apple, this could be the first step toward its own subscription television service. “If Netflix sees success with the offering, perhaps other subscription services — either over-the-air (OTA) or cable-back — could come to Apple TV as well,” the post predicts. “An a la carte offering of premium content that is billed through one party and viewable on an array of connected devices could be a good start at disrupting the current cable business model.”
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