Apple is offering is the cheapest among high-profile SVOD services — and that's likely to hurt competitors across the board:
US subscribers for the first time in 8 years in Q2 2019, which it partially attributed to the fact that it raised prices.in cash on hand, in sharp contrast with the heavily indebted Netflix. And while the tech giant is pivoting to a services-focused model, it remains relatively impervious to the pressures facing media companies reliant on paid content.
Netflix is arguably the most risk-exposed of all the media companies because the vast majority of its revenue comes from subscription dollars. Even media giants like Disney that are exposed to other risks like the gradual erosion of pay-TV and the rising costs of content production are more diversified businesses overall than the streaming giant, thanks to licensing, theme parks, and consumer products.
Apple TV+ will also shake up the connected-TV market, in which it has historically lagged leaders Roku and Amazon Fire TV. Domestically, Roku and Amazon Fire are the dominant device makers in the US, with Roku taking about 21% versus Fire TV , Google Chromecast , and Apple TV , perWith free, high-quality content now baked into Apple hardware, it's likely that we'll see a post-launch hardware sales spike, hitting the tech giant in Q4 2019 or Q1 2020.
That's particularly true because of its revamped TV interface that will streamline access across the content universe, including rival SVOD, rentals, and even pay-TV services. Earlier this week, Ithat the main value prop of Apple's offer to the consumer is convenience, and that consumers are generally willing to pay for the convenience of a service that is easy, knows them, and meets their needs and wants.
Given that, I expect that Apple will start to eat into some of Roku and Fire TV's market share over time. Apple TVs are pricey — $150 for the most basic version — but for consumers lured by free high-quality content and the promise of additional convenience, that could seem like a more reasonable long-term investment to make.Sign up for the Digital Media Briefing to get it delivered to your inbox 6x a week.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Apple Unveils Cheaper iPhone, Pricing for Streaming TVApple’s new iPhones will resemble recent models, but with better cameras and new colors.
Consulte Mais informação »
Jason Momoa Just Said His New Apple TV+ Series Is Better Than ‘Game Of Thrones’Those are some serious claims.
Consulte Mais informação »
Breakingviews TV: Apple on airThe iPhone maker’s annual product launch included a $5 TV offering that undercuts pricier Netflix and Disney. It won’t make much impact on a near-$1 trillion company that mostly makes its money from selling phones – but it sets an intriguing...
Consulte Mais informação »
Everything you need to know about Apple TV plusGet all of the information you need to know about the new streaming service to rival Netflix, Apple TV plus
Consulte Mais informação »
Apple TV+ Is ‘No Substitute’ for Netflix, Analyst SaysBank of America Merrill Lynch analyst Nat Schindler reiterated his Buy rating for Netflix stock on Tuesday, playing down the competitive threat from Apple.
Consulte Mais informação »