Wealth Advisor Rockville, MD
Hoping to get its foot into the streaming landscape, Apple is set to make a big announcement that it will be planning to offering a video streaming service at a high-profile event in Cupertino, Calif., on March 25.
Hoping to get its foot into the streaming landscape, Apple is set to make a big announcement that it will be planning to
Some details have emerged over the last few months about the highly secretive new streaming service, but many key facts are still unknown, namely the pricing and whether or not Apple’s streaming service will feature bundles that incorporate multiple services. It’s believed that a large discount on the already available streaming services may bolster consumers to sign up in a highly saturated market.
While concrete details may be scarce, there is some information that is known, according to CNBC. First off, Apple’s new video streaming service will live in its TV app and within that app, Apple will allow its users to subscribe to streaming services, likely to including over-the-top (OTT) services such as Starz, Showtime, CBS All Access, Viacom’s Noggin, HBO, and other existing channels, which is similar to how Amazon operates. Apple’s service will not include competitor Hulu or Netflix. The idea is that users can watch different video channels on one dedicated application so that they don’t have to switch between the different apps to get the shows or movies they want.
Additionally, Apple is investing in original content, some of which will be available to Apple users in the TV app. Apple is believed to have spent as much as $1 billion over the course of 2018 for its original TV programming, according to MacWorld. Some of the shows include a revival of Steven Spielberg’s Amazing Stories, Steve Carell, Reese Witherspoon and Jennifer Aniston are set to do a drama that draws heavily from the book Top of the Morning: Inside the Cutthroat World of Morning TV by Brian Stelter, as well as M. Night Shyamalan’s unnamed thriller series.
Apple is also pushing for a 30% cut on their customers who subscribe to an OTT service though its streaming service. Currently, Apple gets a 15 percent cut on revenue that sign up to HBO Now and Netflix though the App Store.
Apple has been very secretive about its plans for bundling that even most of its partners in its channels are unaware of how the packages will work and what it will charge, reports CNBC.
Of the unknown information, media analyst Alexia Quadrani said in a note to clients, “While we met with several companies participating in Apple’s upcoming video service, none seemed to have a clear sense of what will exactly be announced on Monday. There is some consensus however that the product will include free original content plus a number of channels that consumers can purchase or view in one app using a single sign-on.”
Since many of Apple’s streaming services still aren’t privy to details, that suggests that any discounts on subsidized pricing will come from Apple and not its partners. The discount bundling move would differentiate Apple from Amazon, as its OTT services are priced a la carte.
According to a person familiar with the contracts, Apple has already negotiated bundling with its partners and Apple will be taking a lower licensing fee bundled packages, reports CNBC.
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