“Apple is preparing a new digital video service that will marry original content and subscription services from legacy media companies, according to people familiar with the matter,” Alex Sherman has just reported for CNBC. “Owners of Apple devices, such as the iPhone, iPad and Apple TV will find the still-in-the-works service in the pre-installed ‘TV’ application, said the people, who asked not to be named because the details of the project are private.”
“The product will include Apple-owned content, which will be free to Apple device owners, and subscription ‘channels,’ which will allow customers to sign up for online-only services, such as those from HBO and Starz,” Sherman reports. “Apple plans to debut the revamped app early next year, the people said.”
“Customers will be able to access all of their content from within the TV app so they won’t need to download individual apps from multiple media providers,” Sherman reports. “Apple is spending about $1 billion on original content this year, targeting “PG-rated” shows that appeal to wide audiences and won’t get the company in trouble by making them available for free to owners of all devices, said the people. Apple is also looking for ‘tent pole’ franchises that could serve as linchpins to a paid Netflix-like subscription service down the road, two of the people said.”
“The Wall Street Journal reported last month Apple has about 24 original shows in production and development,” Sherman reports. “Peter Stern, who joined Apple in 2016, has been tasked with striking contracts with media companies to put together the service, said people familiar with the matter. Stern, who reports to [Apple SVP Eddy] Cue, was Time Warner Cable’s chief strategy officer”
Read more in the full article here.
MacDailyNews Take: Spend $1 billion to give it all way? For some perspective, remember that Apple is said to have spent well over 3X that in fraudulent iPhone repairs on China in 2013. $1 billion is a drop in the bucket to Apple. $10 billion is. When buying a Mac, iPhone, iPad, Apple TV, etc. gets you access to FREE exclusive hit series and other content, Apple’s so-called “competitors” will be deer in the headlights, with nothing to offer but their typical Apple knockoff products. They’ll then be forced to sign deals with other outlets to offer free NON-EXCLUSIVE content that can be found elsewhere.
Apple devices sales will increase, meaning the install base will increase, meaning Apple Services will increase and the cost of exclusive original content will bar the low-margin fragmandroid bottom-of-the-barrel scrapers from ever following. Hey Haw!
I’d like to create an integrated television set that is completely easy to use. It would be seamlessly synced with all of your devices and with iCloud. It will have the simplest user interface you could imagine. I finally cracked it. – Steve Jobs
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