“Apple doesn’t necessarily need to use a streaming service to create revenue,” Daniel B. Kline writes for The Motley Fool. “It needs one to make upgrading your iPhone more attractive.”

“Apple hasn’t revealed many details of its upcoming Apple TV+ streaming video service,” Kline writes. “With Disney+ launching at $6.99 a month with multiple Marvel shows, a Star Wars series (with a second to come), and the entire Disney children’s catalog, there’s really no price point where Apple can compete. That’s why the company shouldn’t try to. It should focus on having a few shows and movies that people want to watch and then give the service away to users of its latest devices.”

“The video service could create that upgrade desire. Apple could make its streaming offering free for users on the latest version of iOS,” Kline writes. “If that version only works well (or at all) on newer phones, then getting access to top-tier free content might help push consumers to upgrade sooner.”

Read more in the full article here.

MacDailyNews Take: Speeding up the rate of iPhone and iPad replacements would massively move the needle for Apple, easily generating far more revenue than new content investments require.

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

SEE ALSO:
More U.S. households now subscribe to streaming services than cable/satellite TV – March 19, 2019
Apple is ready to unveil their big bet on television – March 19, 2019
Netflix won’t take part in Apple’s upgraded TV app – March 18, 2019
Apple’s original content: Free to owners of Apple devices – March 18, 2019
Analyst: Apple is planning to give billions of dollars in video content away for free – March 18, 2019
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

[Thanks to MacDailyNews Readers “Fred Mertz” and “Judge Bork” for the heads up.]