Via BTIG analyst Richard Greenfield:
To-date, Apple has announced 25 shows in development with what we believe is a video service launched planned for mid-2019. We believe the go-to-market strategy will be to drive consumers globally to use the “TV” app found on their iOS and tvOS devices. We believe all a consumer will need to do is already own or buy an Apple device (iPhone, iPad or Apple TV) to have free access to all of the content Apple’s video team is creating. Think of Apple’s strategy along the lines of Prime Video, which is available at no extra cost in a bundle with an Amazon’s Prime two-day shipping account. Apple will provide video content at no extra cost to consumers who own an Apple video capable device (sorry Android users). We suspect Apple’s TV app will also become available on Macs as iOS and MacOS become increasingly aligned.
Similar to Amazon Prime, the initial Apple content offering is just the beginning. Apple is hoping that consumers that come in for one of their original series will have interest in “Game of Thrones” on HBO, “Power” on Starz or “Homeland” on Showtime with one-click to sign up and start watching those shows within the “TV” app on iOS/tvOS devices – essentially mirroring the Amazon Channels strategy, which has been incredibly successful to-date.
Read more in the full article here.
MacDailyNews Take: This echoes an October 2018 report from CNBC.
Spend $2 billion to give it all way? For some perspective, remember that Apple is said to have spent 2 or more times that in fraudulent iPhone repairs on China in 2013. $2 billion is a drop in the bucket to Apple.
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! — MacDailyNews, October 10, 2018
Smart move to make it a nice little perk of owning an Apple device. – MacDailyNews, October 10, 2018
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
SEE ALSO:
Apple patent application for Apple TV interface reveals aspects of live TV streaming service – February 5, 2019
Apple’s deep bench of original programming continues to grow – January 18, 2019
Apple plans to give away original content for free to device owners as part of new digital TV strategy – October 10, 2018
[Attribution: Apple 3.0. Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
They should just upgrade apple music to apple media where the subscribers would get unlimited access to music and movies in the apple library. Subscribers that already signed up for apple music will get access to the movies and TV shows for free.
Buy AAPL on news/predictions/rumors of this service regardless how this shakes out; the stock will continue to move up in the short term. The P/E of 15.51 is still insanely low and the stock high of 232 is still far away. If the perception/reality of United States/China trade deal works (regardless if the deal is really meaningful) the stock will pass the 232 high.
What if someone doesn’t want to pay the ultra premium Apple will charge both?
The popular opinion among consumers is that it’s better to have true a la carte or very small bundles and pay for only what you use.
“What if someone doesn’t want…”
What if, what if, what if… There will always be somebody who doesn’t think whatever is being offered is good enough. Thankfully these people are in an extremely small minority.
Hopefully, that move might sell more hardware for Apple.
“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.” This statement seems to depend heavily on the free content being ‘a hit’. Best to wait and see. Apple has set their own baseline low with Planet of the Apps and Carpool Karaoke.