Apple CEO Tim Cook on Monday announced Apple TV+, a long-rumored ad-free, on-demand entertainment streaming service.
Edward C. Baig of USA Today had the news:
Apple TV+ will launch in the fall and be part of a revamped Apple TV app.
In broad strokes, the new service would appear to pit Apple against the likes of Netflix, Amazon Prime and Hulu.
Apple didn’t spell out pricing for Apple TV+, but it doesn’t appear to be free. You’ll have the option, apparently, to pay for premium channels you don’t currently subscribe to (with Apple presumably getting an undisclosed cut).
Meantime, the revamped Apple TV app will turn up in May, via the Apple TV set-top box and on your iPhone and iPad. The app will come to Macs in the fall.
Reed Albergotti of The Washington Post reported that Apple is pushing more into services:
To tide Apple over before the monumental shift from mobile technology that has driven spending for a decade to the next generation of devices, Apple is becoming increasingly dependent on services — sales of music and data storage that it complemented with new subscription products announced Monday. Apple is working on developing new gadgets, such as augmented reality glasses, but it can’t count on a big shift happening again any time soon.
In that way, spending billions on its own content might be a less risky proposition for Apple than waiting on the sidelines of streaming. The online entertainment world is starting to consolidate into a handful of gigantic players, and there was no guarantee that those other companies would continue to allow their content to rely on Apple’s platform, with Apple getting a cut of the revenue.
By creating its own high end streaming service, Apple gives itself a chance of becoming one of the few big players in the industry that is capable of controlling its own destiny, without being at the mercy of other platforms. Even if none of its shows become the next “House of Cards” or “Game of Thrones,” it can use the content in any way it chooses, to help sell devices through promotions or license it out to other platforms for extra revenue.
Alex Sherman of CNBC.com reported that the announcements lacked details:
But if Apple v.3 is going to change the way investors value Apple, they’ll need more answers than Cook gave Monday. Apple was so sparse on key details around its video and news services that it felt like Apple had rushed the event or was waiting on a critical deal that never came through.
Apple introduced Apple TV+, its subscription video service for original programs, and showcased a handful of series starring Jennifer Aniston, Kumail Nanjiani and Oprah Winfrey.
But it didn’t say how much Apple TV+ would cost. Apple had previously planned on giving away at least some of its original content for free, CNBC reported last year, so new pricing information was hotly anticipated.
In addition, even if the shows are fantastic, a consumer could watch them all in a month. It made no sense to announce a subscription video service with no library.
