By Ronald Grover and Lisa Richwine
LOS ANGELES, April 27 (Reuters) – Apple Inc began
talks earlier this year to stream films owned by EPIX, which is
backed by three major movie studios, on devices including a
long-anticipated TV, according to two people with knowledge of
the negotiations.
Apple, which now sells a $99 set-top box that hooks up to a
television set and lets users stream online content from Netflix
and the MLB channel, opened discussions with
three-year-old EPIX, created by Lions Gate Entertainment Corp
, MGM and Viacom’s Paramount Pictures.
One of the sources told Reuters that any discussions would
apply to its set-top box and also to upcoming devices that
stream content. Apple is widely expected to unveil a
full-fledged TV product later this year or in early 2013 to
drive its next phase of growth and potentially revolutionize the
industry.
Apple has been stymied for much of the past year in securing
marquee Hollywood content. Talks with EPIX are in the
preliminary stages and no agreement is considered near, the
source said.
The talks could be complicated by EPIX’s 2010 agreement with
Netflix, which pays $200 million a year for the rights to stream
movies to its 23.4 million U.S. clients. That deal gives Netflix
exclusive streaming rights to EPIX movies through September –
before Apple is expected to trot out its planned TV set.
Apple declined to comment on what it called “speculation.” A
Netflix spokesman had no immediate comment. An EPIX spokesman
had no comment.
(Reporting By Ronald Grover, Lisa Richwine; Yinka Adegoke,
Poornima Gupta; Editing by Gary Hill)
