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In a new note to investors obtained by Internal business, Jefferies analyst Tim O'Shea predicts that Apple will charge US consumers $ 15 per month (about $ 19.86 at the time of writing) for access to its next video streaming platform .
To put this number in perspective, in the United States, Netflix evaluates its three streaming levels at $ 9, $ 13, and $ 16 per month, respectively. In Canada, the company charges $ 16.99 per month for access to its premium level, ie if and when the new Apple streaming platform comes here, the company could adopt a strategy regional pricing that echoes the Netflix price.
Moreover, regardless of the price of entry, O'Shea says he thinks that Apple will face a tough battle to convince iOS users, even dyed in wool, to subscribe. To date, the company has spent a small fraction of the money invested by Netflix in original content, and Apple's insistence on a split of sales divided by 30% causes friction with large production companies like HBO.
"There are only a few players who make content that matters," O'Shea writes. "If you lose one or two, it makes your service a lot less attractive."
In Canada, these problems could be exacerbated if regional rights holders refused to cede their content to Apple.
Another interesting point raised by O'Shea is that even if the platform became a resounding success, it would hardly make up for the decline in iPhone sales.
In the best case, in which Apple would be able to accumulate 250 million subscribers by 2023, the service would represent only about five percent of the company's revenue that year. Netflix, by perspective, has 139 million subscribers after 12 years of activity in the streaming industry.
A recent report from Bloomberg suggests to Apple to announce the video platform, as well as its news subscription service, March 25. Bloomberg indicates that he expects Apple to launch the first this summer.
Source: Business Insider Via: 9to5Mac
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