“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.
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