Apple’s yet-to-launch on-demand video streaming service could be cheaper than Netflix.
Apple’s long-awaited video streaming service could be cheaper than Netflix, according to a report from Recode. A TV executive “who has talked to Apple” tells Recode’s Peter Kafka that the company plans to sell a standalone subscription to its original video shows, priced below Netflix”.
In the US, Netflix’s basic plan costs $7.99 per month, with the Standard priced at $10.99 per month, and the Premium costing $13.99 a month. In India, the same plan costs Rs 500, Rs 650 and Rs 800.
Other industry insiders claim that Apple will bundle all of its TV content with Apple Music and Apple Care, as part of a “very big subscription service”. There are those also who tend to believe that Apple could make some of the content available for free through Apple’s TV app, which can be accessed on the iPhone, iPad and Apple TV in select countries.
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Apple has been rumoured to be working on an on-demand video streaming service for years, similar to Netflix and Amazon Prime Video. Software and services have been key to Apple’s growth strategy. Revenues from services came in at $9.2 billion in the Q2 2018, which is 31 per cent higher than compared to the same quarter in 2017. Apple’s services category includes Apple Music, Apple Pay, iCloud, and Apple Store.
Last year, Apple hired Jamie Erlitch and Zack, the former Sony Picture TV executives, to lead the video programming at the company. Apple is expected to spend $4.2 billion in original programming by 2020, including $1 billion in 2018. The Cupertino company has been inking deals with original content partners in an aim to gain exclusive video content on its platform. It recently signed a long-term, multi-year content deal with Oprah Winfrey to create unique content. Apple, however, hasn’t said on what platform all of its original shows will appear.
Apple’s yet-to-launch on-demand video subscription service will compete with Netflix, which has over 125 million paid subscribers worldwide. The streaming giant expects to spend about $8 billion on original content this year. Former American President Barack Obama recently signed an agreement with Netflix to create a wide range of content on the streaming platform.