Apple TV subscription service: Cable killer or premium-priced product?

“Will Apple’s premium pricing strategy carry over into an Internet TV service?” Reinhardt Krause reports for Investor’s Business Daily. “Will Apple compete on price vs. other emerging over-the-top (OTT) services, or will consumers pay more for Apple TV, ostensibly for a better ‘user experience?'”

“Those are questions analysts are asking ahead of Apple’s expected launch of a subscription Internet TV service,” Krause reports. “An announcement could come in early June, at Apple’s Worldwide Developer Conference, some analysts speculate. Apple hardware customers typically pay a premium, whether it’s for a MacBook, iPhone or gold-plated Apple Watch.”

MacDailyNews Take: The Apple Watch is not “gold-plated” nor are quotation marks required for “user experience.” The latter screams non-Apple user / anti-Apple bias, Reinhardt.

“David Bank, an RBC Capital analyst, in a research report says Apple’s ‘value proposition’ — the savings that subscribers will get from monthly cable bills and the channel lineup — will be key. His views are shaped by an RBC Capital consumer survey,” Krause reports. “Bank does not view Apple’s service as a potential pay-TV killer.
‘To displace linear pay TV in a meaningful way, Apple will probably need to offer more of a value proposition than it is likely to,’ wrote Bank.”

Read more in the full article here.

MacDailyNews Take: Apple sells premium products at premium prices to premium customers, however, Apple’s willingness to sell the current Apple TV for a mere $69 indicates that the company is serious about delivering quite the value to customers.

Related articles:
How Apple TV could connect all the dots – May 15, 2015
New Apple TV expected to feature touchpad remote – May 4, 2015
Apple TV ‘skinny’ package likely to accelerate cord cutting – March 29, 2015


  1. “Apple’s willingness to sell the current Apple TV for a mere $69 indicates that the company is serious about delivering quite the value to customers.”

    More probably, they’re unloading a product which will soon become obsolete.

    1. What, more bashing? Apple want’s people to have the AppleTV. While it is great in what it offers for free programming, it also provides a revenue stream for those who want the extras.

      I recently bought my second AppleTV. All I had to do was connect it and wake up my iPhone. It recognized my phone, generated a prompt for my password and within seconds everything was set up. My Mac showed up, complete with all the movies, photos and other content that I share with the network. I slide up the control panel on my phone, click on the AirPlay icon and the display on my phone was instantly mirrored on my flat screen (great for high resolution games), plus the remote app also instantly recognized both the AppleTV and my Mac, giving me full control over the media on both systems. This is a heck of a deal for $69. I have a family subscription to Netflix and it is way better on my flat screen than any other device I’ve used. (For one thing, it follows the AppleTV UI, which is great, plus it is much snappier than other devices. I am very happy with it.

  2. I just don’t think they’ll go premium with this for the simple fact that for a premium priced product, you have to offer a premium service. I don’t see that happening with TV.

  3. Hope it’s going to be a stand out service/technology offering but it will be interesting to see if they can indeed present a fundamentally superior product/experience when they don’t have the control they have with their other products.

  4. Unless there is a Turner Movie Classics channel, this will be a non-starter in our home. That’s my wife’s go-to channel, and there will be no cable cutting until we can get this via some other method. /sigh

    1. 1) It’s not called Turner Movie Classics.
      2) Why did you end with “sigh”? There’s no evidence that they won’t include TCM if/when they do roll out a service, so why preemptively act disappointed in a yet-to-be-announced service that you’re anticipating won’t have one channel?

      1. 1. Ok… Turner Classic Movies. Jeez, how petty. I said my wife watches it, not me.
        2. There has been revelations of many many potential channels being added. Nothing in regards to TCM. The sigh is because I would like to drop my cable account but know I can’t do it unless TCM is offered, and there hasn’t been a peep about this channel. I would love to be proved wrong.

      1. The TCM app requires that you have access to the TCM channel via a cable account. Plus, have you not noticed how many channels on Apple TV require that you activate them by proving that you have a cable account?

  5. “MacDailyNews Take: Apple sells premium products at premium prices to premium customers, however, Apple’s willingness to sell the current Apple TV for a mere $69 indicates that the company is serious about delivering quite the value to customers.”

    Then why don’t they get serious about delivering quite the value to customers and halve the prices of music? And don’t give me “it’s the labels’ fault”. It will be the exact same thing with the studios/networks for video. Apple is out to make a buck. I don’t care how it is sugar-coated.

    1. Dear Bob,
      Cheap is as cheap does!
      Do you remember when you had to pay $15 for an album just to get one good song?
      Apple fixed that for you. But no gratitude from you just bitching about even cheaper prices.

  6. Apple is going to need a high volume of people [who will make a monthly payment. That needs to be at a level low enough to keep people with non-premium incomes paying, Less than costs of cable when you get down to it,

    I also believe that Apple needs to set the program up where we can select the channels we really want and we can exclude the crap we don’t want. My wife and I can easily get be with 20 – 25 channels, including the local stations,

    1. Agreed, but I suspect this ala carte method to obtain a half dozen channels will cost as much or more than a basic cable package with hundreds of channels. I, frankly, don’t know how Apple can make a cost-effective case, but I hope to be pleasantly surprised. June is right around the corner.

  7. What’s to get excited about TV? It’s overpriced crap and anything north of $240 a year for watching commercials, reruns, and remakes is a ripoff. Stream me true pick and choose TV at a buck an hour and you might have something worth buying.

  8. In reality we probably have the TV on for 30 hours a week. At the weekend whilst it may be on, the actual attention to programs can be low. Watching new content is limited to just a few shows. So there definitely potential to cutting the cable.
    Making is as easy as getting cable is going to be the hard part.

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