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Is Apple TV taking on cable?

Apple may be launching new online subscriptio... 01:50

Apple TV is rumored to be taking on cable in a whole new way. Not to be confused with their device that provides streaming content, this would be a full-fledged web-television service. The new Apple TV would consist of a selection of channels, including live broadcasts.

Is Apple TV in trouble? 01:55

As Bridget Carey from CNET told CBSN, Sling TV does something similar. For $20 a month, they provide 11 stations instead of the whole bundle. When starting this endeavor, Sling and Dish made a deal with ABC, Disney, ESPN, and Turner to acquire their stations. Carey says the rumor is that Apple is in talks with Viacom to do the exact same thing. Viacom includes channels like MTV, VH1, CMT, Comedy Central, and Nickelodeon, just to name a few.

Carey says the drawback to consider is that Apple TV will require extraordinary Internet connection to guarantee the video will play smoothly. So while it might save money with cable services, you might need to amp up your Wi-Fi.

Carey says it might be a struggle for Apple to incentivize consumers to choose this service over cable, particularly when the price may not be much lower than that of a regular cable bundle.

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