Apple changed the music, mobile and personal computer industry. The company is using the popularity of the iPhone and iPad in the field of streaming TV and Disney and Netflix.
On November 1st, Apple will launch Apple TV+ streaming service, which costs $5 a month. In the face of competitors with richer resources and years of experience in producing popular shows. For Apple, it will face a tough battle in the field of streaming media.
In order to quickly build a user base, Apple offers up to one year of free service to users who purchase their devices. Apple TV+ will include eight original episodes, including “The Morning Show” starring Jennifer Aniston and Reese Witherspoon. And the sci-fi show “See” starring Jason Moma.
The biggest question is whether these customers will survive the free trial.
Before announcing the news, analysts and investors believe that Apple faces fierce competition with Netflix and Disney’s Disney+.
Compared with the huge resource library of industry leader Naifei, Apple’s content is really dwarf. Netflix previously announced that its paid subscribers were 151 million and invested $10 billion in original content.
Disney will launch Disney+ on November 12, and the company’s share price has risen nearly 20% in recent months. Disney currently controls Hulu, a fast-growing streaming service. It also has rich resources such as Marvel’s superhero blockbuster, Star Wars, Toy Story, and National Geographic Channel.
Disney+ has a budget of more than $1 billion on original content, and by 2024 this number will grow to around $2 billion. It is priced higher than Apple TV+, $7 a month, or $70 a year. And bundled services including ESPN+ and Hulu will cost $13 a month.
Media executives and analysts believe that most families are willing to pay for more than one streaming service. Many people think that existing users of Netflix are unlikely to cancel their subscriptions and instead pay for other services.
Apple will not compete directly with Amazon’s Prime Video because this service is bundle with other benefits from Prime members.
Next spring, Apple will face another important TV competitor: HBO. AT&T’s Warner Media’s upcoming HBO Max, which sells for $16 to $17 a month, owns HBO, Warner Bros. and other content libraries, and is investing in original content. HBO Max will have popular drama resources such as Game of Thrones, Friends and The Sopranos.
Apple plans to invest $2 billion in original content this year, with a cash flow of $210.6 billion. Media analyst Rich Greenfield said: “Apple’s financial resources far exceed that of Disney”. “If Apple’s content is great, people will subscribe.”
At present, the biggest advantage of Apple TV+ is its coverage and scale. It has 1.4 billion devices worldwide and most new devices are sold for free. When Apple TV+ was launched in more than 100 markets in November, it had the potential to do what other services didn’t do: it was everywhere from day one.
Due to Apple’s launch of Apple TV+ service, streaming media company Roku shares closed down 10.49% on Tuesday at $144.14. Disney shares fell 2.19% to $135.79. Netflix shares fell 2.16% to $287.99.
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