Hours before the “It’s show time” event, Apple began streaming a Car Play footage of someone driving from Los Angeles to Cupertino, in a not-so-subtle hint that we are about to see a lot of Hollywood honchos arriving for the announcement of its new Apple TV+ video service against formidable competition. Existing cable packs plus original content – it marks the first time Apple is jumping into a new and established industry in, well, forever. –
The Apple-goes-Hollywood move is just the next in a long line of reorientations of Apple as a service company, concocted a few years back when CEO Tim Cook started to prepare for the inevitable commoditization of the bread-and-butter iPhone product. Apple’s CEO Tim Cook loves to brag at conference calls with investors that the revenue and profits from its “services” business is growing leaps and bounds, far outstripping the revenue growth in the iPhone department. The App Store alone is now a Fortune 100 company by itself, raking in more than, say, the whole McDonalds franchise.
On the hook for billions of losses, however, after streaming services like Netflix or Spotify balked or circumvented the 15%-30% cut Apple takes from subscriptions sold via the App Store, the team from Cupertino decided to futureproof its revenue stream from services by taking the fight directly to the competition. Last year, streaming subscriptions outpaced cable, and Apple just went in, announcing its own TV+ video service.
Apple TV+ streaming and Channels service price, features, markets, and platforms
Instead of outing an actual TV set, Apple now aims to become an alternative to cable by mixing shows from renowned names like HBO or Showtime with dozens of its own TV+ original series, all from the comfort of the new Apple TV app, online or offline. With the new Channels service there, Apple will bundle your existing subscriptions, and personalize and curate the shows you might like, gleaning from the subscriptions or preferences you already have shown by renting iTunes movies and TV shows. Those will now also be folded into the new Apple TV app, coming in May.
The Apple TV channels will sport such juggernauts like HBO, Starz, SHOWTIME, CBS All Access, Smithsonian Channel, EPIX, Tastemade, Noggin and some new ones as MTV Hits, with more down the pipe. All of this can be accessed within one app – Apple TV – no separate logins any more.
TV+ and Channels will be available from the new Apple TV app
The service would be reaching 100+ global markets and will be available not only on Apple iOS devices but also coming to the Mac, Roku streamers, and even Samsung, LG, Sony or Vizio smart TVs. How much? Well, separate subscriptions for HBO or Showtime will run you $9.99/month each, and you can subscribe with a single click. The Apple TV+ release date is scheduled for some time in the fall, with an “ad-free” price yet to be announced.
With an installed base of more than a billion potential viewers who are used to paying for media, Apple could immediately become the next big thing on the trendy “what to watch” block. Unlike Netflix, however, whose stratospheric rise is fueled by copious amounts of debt, Apple reportedly took a more measured approach, earmarking “just” a billion for testing the original content streaming waters. Eddy Cue, Apple’s senior vice president of Internet Software and Services, piled on today:
We’re honored that the absolute best lineup of storytellers in the world — both in front of and behind the camera — are coming to Apple TV+. We’re thrilled to give viewers a sneak peek of Apple TV+ and cannot wait for them to tune in starting this fall. Apple TV+ will be home to some of the highest quality original storytelling that TV and movie lovers have seen yet.
That’s not to say that the team from Cupertino is not ambitious, though – Eddy Cue is on record saying that they want to acquire or produce shows on the level of Game of Thrones, and, knowing Apple’s money, they could very well do so. For comparison, HBO spends two billion on original programming, and Apple could easily double or triple the amount invested if the shoe fits.
Netflix is way ahead with $11 billion earmarked for spending on own shows and content this year, though there is a lot of fluff in it, while Apple usually takes a more targeted approach when it comes to quality, regardless of what one might think about shows like Planet of the Apps. In any case, it will have way fewer movies and TV shows than the rest of the competition at launch, though, as you can see from the stats below, having the most content doesn’t make for the most popular such service.
Apple TV+ new original shows list at launch
Apple has already poached plenty of entertainment industry names, too, so it finally seems bent on building a proper media empire. Here are all the shows Apple said its streaming service will be launching with:
