Report: Apple’s snazzy television service isn’t coming until 2016

The Apple TV is expected to get a hardware upgrade, but no new service until 2016. (Courtesy of Apple)

Waiting for Apple's breakthrough television service? You may have to wait a little longer.

While many were hoping that Apple would launch a new TV service at its usual fall iPhone event, Piper Jaffray analyst Gene Munster said in a note that the tech giant will probably delay the expected TV service until 2016. According to a report from Apple Insider on the investor note, Apple is still negotiating contracts with content providers. In the note, Munster said that he puts the chances of seeing the TV service debut at 50-50.

We've heard this tune before; many Apple observers expected that the company would release a streaming TV service this spring alongside Apple Music. But, after reports of protracted negotiations, those hopes faded even before Apple chief executive Tim Cook took to the stage.

Competition in the streaming video space is more crowded than ever, as more and more traditional television and cable companies look to put their content on smartphones and tablets. Apple will have to compete not only with the likes of Netflix, Hulu and Amazon for consumer subscription dollars, but also with a growing number of networks and other companies such as Dish and Sony, which offer their own separate streaming services.

But coming late to that party doesn't necessarily spell doom for Apple. While the proliferation of streaming services is giving users more choice, it's also made for a confusing landscape. Cord-cutters have made it clear that they don't want fat cable bundles that force them to pay for channels they don't want. But paying for several, small services is also a pain. If Apple can waltz onto the scene with attractive, slim bundles that give users a good sampling of networks at a lower price, it will have a good market.

That's definitely a tall order, however, which may explain why there are so many delays. Apple's reputation is for releasing polished products — even if its Web services, such as Maps, tend to be a bit less gleaming than its hardware — and its consumers are less likely to tolerate launch glitches. Just look at the launch of Apple Music.