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Revamped, cable-friendly Apple TV? Not in 2012, but someday

Disagreement over who will control the UI and sell the set-top box.

Revamped, cable-friendly Apple TV? Not in 2012, but someday

Apple may indeed be working on a revamped version of the Apple TV to work in conjunction with cable TV service, but such a product isn't expected to be released before the end of 2012. According to a new report by Bloomberg, Apple is running into bumps in the road in its negotiations with media companies, including who will control the interface and who will sell the set-top box.

Last month, the Wall Street Journal cited sources saying that Apple was in talks with US cable operators to bring live TV and on-demand content to the Apple TV. Apple reportedly wants to "erase the distinction between live and on-demand content" through a revamped device, and users are expected to be able to start any show at any time regardless of what kind of content it is.

As we noted in our writeup, Apple has already added a number of additional content options to the Apple TV, including access to Netflix, Hulu Plus, some sports (NBA and MLB), and even some live content from the Web (WSJ). Expanding into the live TV space is the next logical step—if only cable companies would play along.

According to Bloomberg, there has been a "tussle for control" over who gets to decide what the product's interface looks like. (Raise your hand if you think Apple is demanding full control over the UI.) Similarly, the two sides are also apparently split on whether the device would be sold directly to consumers or "leased through cable providers," as has typically been the case with cable boxes. Again, it would hardly be a surprise to learn that Apple would like to be able to sell its own product to buyers directly, but it's possible the cable companies may eventually negotiate a deal that would allow both sides to sell or lease the product.

The report runs down previous rumors that Apple had begun talks with certain media companies, such as Comcast and CBS, back in 2007 when it first released the Apple TV. CBS CEO Les Moonves stated publicly last year that Apple had been attempting to work out content deals that involved an ad-supported TV service, but that his company turned it down because of a disagreement on payments. Apple had reportedly proposed a service that would involve splitting the revenue earned on advertising, but CBS preferred cold, hard cash in advance for its licensing deals.

But even though Apple appears to be facing challenges in taking the Apple TV to the next level, the general public and experts alike seem to have some confidence in Apple's ability to improve the TV experience. Even former (and sometimes scorned) Apple CEO John Sculley has expressed his confidence in Apple's ability to offer an integrated set-top box or TV set, stating that the television market is "Apple's game to lose." When we polled Ars readers on whether they thought that was actually true, more than half (53.4 percent) said they believe Apple is capable of giving TV the overhaul it deserves. Another 31 percent said they think another company could do it better, while 10 percent said they felt TV was fine as it is.

The current version of the Apple TV remains a "hobby" for Apple, despite selling 4 million units during its first three fiscal quarters of 2012. Many Apple fans are eager to get their hands on the next generation of the product, whether it's a set-top box or an integrated TV set, but it sounds as if it will be a while before we see anything but minor updates to the Apple TV as we know it.

Channel Ars Technica