(Reuters Breakingviews) - Apple is known for the cleanness of its smartphone des...
CEO Tim Cook speaks at an Apple event at their headquarters in Cupertino, California, U.S. September 10, 2019. REUTERS/Stephen Lam
NEW YORK/SAN FRANCISCO - Apple is known for the cleanness of its smartphone designs, yet its TV plans have until now been full of static. On Tuesday, the $970 billion company made things a tad clearer, by announcing that its new Apple TV+ package will be cheaper than rivals. That doesn’t guarantee it will be a smash hit, but it’s enough to get a bunch of people trying it out, which will help Chief Executive Tim Cook with a longer-term goal.
At $5 a month, Apple’s offering costs less than half the $13 charged by Netflix for its most popular plan, and the hitherto competitive $7 charged by Walt Disney for its own over-the-top product announced earlier this year. That adds a price war to the content war already underway. Netflix, Amazon and Disney have spent billions on programming. Apple has $102 billion of net cash to dip into. It has committed $6 billion for original shows and movies, the Financial Times reported in August.
Regardless, Apple TV is likely part of a larger strategy shift from hardware to subscription revenue. One tell is that the company is giving away a free year of service with the purchase of an iPhone, iPad or Mac. That’s a decent way of getting customers on the hook to pay Apple recurring fees. Apple also unveiled a subscription gaming service for $5 a month for a family. While the content is limited that may not matter.
For the nine-months ending June 29, Apple’s service revenue represented 20% of its $196 billion in sales. It’s growing at a fast clip, some 16% over the period compared to the same period a year ago. That compares with Apple’s flagship stream of hardware revenue, which declined. Keeping the trajectory of services going is growing more critical.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Apple Unveils iPhone 11, New Details on Apple TV+ Streaming ServiceSlated to hit stores on September 20, the new phones feature three rear-facing cameras, along with a new “Super Retina XDR” OLED display.
Leer más »
Apple prices streaming service Apple TV+ at $4.99 a monthApple announced that its streaming service, Apple TV+, will launch on Nov. 1 and charge $4.99 a month. AppleEvent
Leer más »
Apple Announces Pricing And Launch Date For Streaming Service Apple TV+Apple finally released details for its forthcoming streaming service, Apple TV+, setting a launch date of November 1 and an introductory price of $4.99 per month. The service will roll out its firs…
Leer más »
Apple Sets Price, Launch Date for TV+ Streaming ServiceThe service will launch with original series such as 'The Morning Show' starring Reese Witherspoon and Jennifer Aniston.
Leer más »
Apple TV Plus to Launch on November 1, Cost $4.99 per MonthApple has finally revealed key details about its upcoming video subscription service: The company used a press event for the introduction of the new iPhone Tuesday to announce that its Apple TV Plu…
Leer más »