Apple joins the fray of streaming video providers. The new streaming service launches in November 2019.
As often as Apple innovates, they also imitate. Long after Netflix, HBO and Hulu have launched video streaming services, Apple TV+ will offer more of the same.
Original content is an area where Apple could set itself apart from the pack. Deep pockets provide massive budgets for acquiring scripts and screenplays. This, coupled with massive production budgets may create high quality content, rivaling that of Netflix and even HBO.
Apple TV+ does not require an Apple TV device. The service can operate across most of the Apple ecosystem — iPhone, iPad, Mac and, of course, Apple TV. Additionally, Apple TV+ is available on Roku, Amazon Fire TV, Samsung smart TVs and other devices. It’s possible that Apple may expand this service to Windows and Android, as they have with Apple Music.
The service will launch with a modicum of content. It’s expected that Apple will offer a free trial, while new content is in development and production. Shows available at launch include “Amazing Stories” (Steven Spielberg), “The Morning Show”, “Home”, “Truth Be Told” and “See”.
The Apple TV+ launch comes at a critical time for the iPhone maker. Investors and analysts have been critical of Apple’s reliance on the iPhone for revenues. As iPhone sales dwindle, Apple’s focus on services is essential. Apple TV+ is just part of Apple’s services strategy, which also includes Apple Music, iCloud, Apple News+ and, the soon to be released, Apple Arcade.
Some analysts predict that Apple will hit $100 billion in revenues from services by 2023. Such growth will alleviate investor fears of dwindling iPhone sales. If an upcoming iPhone convinces consumers to refresh their device, the combination of service revenues and device sales would drive stock prices higher.
The macroeconomic outlook could dampen Apple’s future profitability. Economic recession could cause consumers to tighten spending, resulting in receding subscription retention and device sales.