Monday, we will finally know where are the billions of dollars from Apple.
This is the amount that the company has allocated to a video streaming service that has not yet been confirmed. For years, rumors that Apple has plunged into a market dominated by YouTube, Netflix and other streaming companies have circulated. It's even talked about in shows and celebrities. Nevertheless, Apple has not yet specified the purpose of all these partnerships.
We'll know this Monday when Apple will host an event at the Steve Jobs Theater on its Cupertino, California campus to unveil its long-awaited video offering. The event will begin at 10:00 am, Pacific time / 1:00 pm. AND.
For Apple, this launch marks the first time that it places its service business at the center of a major event. He spent the first three days of this week in an unprecedented stream of material announcements made via a press release,has a and . In the last decade of Apple's burgeoning launches, none – not even its global developer conference – has focused primarily on services.
The company must put these offers forward now. Last year, Apple became the first US company of one trillion dollars, but fell under this brand three months later. His activity on the iPhone seemed to be on an almost endless increase – until it was suddenly. Apple derives about two-thirds of its revenue from the iPhone, but people are keeping their devices longer and, in countries like China, are opting more and more for Apple's competitors phones, as Huawei and Oppo.
Apple knows that it needs to expand its business beyond the iPhone, especially in the service industry. The region, which includes the App Store and Apple Music, has taken off thanks to us who own the 1.4 billion active devices Apple. In December, Apple's service revenues jumped 19% to a record $ 10.9 billion. Apple Music now has over 50 million paid subscribers and, for all of its services, Apple has 360 million subscribers, an increase of $ 120 million over the previous year. ;last year.
Entering the TV streaming is the next logical step for the company.
"They said in the last four years or so of [earnings] Bob O Donnell, an analyst at Technalysis Research, asks how much service will be important to them.
That does not mean it's going to be easy. Apple is joining an overpopulated world and many of us already pay money every month to several streaming providers. Is there room for another?
Apple declined to comment before the event.
Hobby at the scene
Apple has been playing entertainment for over a decade. The company introduced its first Apple TV in 2007, the very year of the launch of the iPhone. In the early days of Apple TV, Apple has positioned its media box continuously as a "hobby".
Apple finally updated Apple TV at the end of 2015 and released it with its new TVOS software that allows developers to create apps, as well as a new remote that works with Siri. It's this new software that has turned the Apple TV into a not only silly streaming box.
The update took place at a time when consumers were starting to switch from traditional cable subscriptions to smaller streaming networks. On-demand TV services such as Netflix, Amazon Prime, and Hulu offered thousands of videos to stream, while services such as Sling TV, DirecTV Now, and YouTube allowed Internet users to watch live TV over the Internet. More and more Apple TVs, Roku boxes, and Chromecasts are used to display this content.
Now, Apple does not just want to manufacture the hardware needed for entertainment viewing. He also wants to make the content that people access.
The key to Apple's success in streaming is just what's on its service. Nobody will pay for content that he does not want to watch.
He entered the market in 2017 with some original shows for his Apple Music service. These included Planet of the Apps, which was widely covered, and Carpool Karaoke, which began life as a viral segment in CBS's Late Late Show with James Corden. (Editor's note: CNET is owned by CBS, which also produces the series.) Both flopped.
Apple had long rumored to work on a virtual cable service that allowed subscribers to choose their channels. But that never materialized, and this is probably not what Apple presents on Monday.
Instead, it is planned to publish a service more similar to Netflix that includes its own content and a video from partners. Apple apparently would have contracted with networks such as HBO, Showtime and Starz to license a previously published content library. (Note: Showtime is owned by CBS, CNET's parent company.) It could also bundle other streaming services and reduce their revenues.
Netflix, for its part, apparently would not participate. "We want people to watch our content on our service," said Netflix CEO Reed Hastings on Monday. "We chose not to integrate their service."
In terms of its own content, Apple has at least 30 projects in preparation, five of which are ready for launch. Its initial investment of one billion dollars in content could reach 4.2 billion by 2022, according to a 2017 estimate of Gene Munster, a longtime analyst at Apple, currently at Loup Ventures.
Among the partners announced by Apple are a multi-year agreement with Oprah, Reese Witherspoon, Night Shyamalan and Steven Spielberg. The company hired two senior executives from Sony Pictures Television to lead this initiative.
Show me the money
To show that these are really services, Apple must ensure that its new streaming TV offer runs on non-Apple devices. And it can not be so expensive that no one subscribes. According to a Deloitte study, Americans who watch online video subscribe to an average of three streaming services.
Some analysts believe that the Apple service could be free for Apple device users, but it is more likely that the company offers a free trial period. For Apple Music, Apple offers a free and extended trial, which is standard for most streaming video services to give new users a free introductory period.
Apple could get more subscribers by bundling its TV service with Apple Music or with an iCloud account. Currently, Apple Music costs $ 9.99 per month, while iCloud storage costs 99 cents per month for 50 GB (an amount less than the currently lowest capacity – 64 GB – on new Apple iPhones), 2 $ 99 for 200 GB or $ 9.99 for 2 TB.
There is also Apple's news subscription service, which is also expected on Monday, which could be associated with its music and television offerings. The service should be based on the acquisition of Apple Texture, nicknamed "Netflix for magazines", which offered unlimited access to magazines and media outlets for a fee.
"Will it be the straw that breaks the camel to make me think about what I already pay?" Carolina Milanesi, Analyst for Creative Strategies. "If you group it together, the value becomes more fluid."
Amazon bundles its music and video services into its two-day Amazon Prime subscription, which costs $ 12.99 for a monthly subscription or $ 119 for the annual pass. Some people pay the amount only for shipping, but others want it for video service, music or other benefits.
In the end, in order for us all to subscribe, Apple must come up with something we can not get anywhere else. We discover Monday if that is what was built.