Apple Web TV: Enlightening or too confusing?

Apple's proposed plan to offer a bundle of about 25 channels streamed through Apple TV will either be the moment that traditional cable starts to unwind, or totally confuse TV consumers, according to analysts who spoke with CNBC.

A report Tuesday morning said that Apple is negotiating a bundle offering of about 25 channels to be available through online streaming on devices from the tech giant.

"Apple is going full, over the top," BTIG technology analyst Walter Piecyk told CNBC's "Squawk on the Street" on Tuesday. "This could be a lot more disruptive to the cable companies than we thought."

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Apple's offering would join the ranks of other online streaming services as competitors to traditional cable TV. But the concept of the bundle isn't going anywhere since Apple would provide its own bundle including channels like ABC, CBS and Fox, said the report.

At the moment NBC is not included because of a dispute between Apple and NBC's parent company Comcast. However, another report said that the network is planning to launch Apple TV during the second half of 2015 through its existing apps for iOS and Android devices. NBC did not immediately respond to a request for comment.

Brian White of Cantor Fitzgerald agrees. He thinks we will be seeing a lot more of Apple in the TV space, which he adds represents a $100 billion market each year.

"Apple is trying to do the democratization of TV," he told CNBC's "Squawk Alley" on Tuesday. "Now that networks are unbundling, I think it's a big opportunity for them."

"Too confusing"

Tim Cook, chief executive officer of Apple, speaks during the company's "Spring Forward" event in San Francisco.
David Paul Morris | Bloomberg | Getty Images
Tim Cook, chief executive officer of Apple, speaks during the company's "Spring Forward" event in San Francisco.

Not everyone thinks Apple's move would be an immediate home run, however.

"My concern about using the Internet to stream television is that there's going be tremendous consumer confusion here," said Kevin O'Leary, "Shark Tank" investor and O'Leary Funds chairman. (Tweet this)

"Do I keep Netflix for 'House of Cards' and my cable provider for live TV as well?" His comments were also on CNBC's "Squawk Alley" Tuesday.

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Until it becomes easy for consumers to understand with one charge a month from one provider, "I think this is going to be a real headache to figure out," O'Leary said

Apple is planning on selling the service as soon as this fall to join a host of TV streaming options like Dish's Sling TV and Sony's PlayStation Vue.

Disclosure: Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com.