Apple must reinvent itself: expected video streaming service on Apple Keynote

The iPhone has made Apple the most valuable company in the world. But the period of strong growth in the smartphone market is over. Now the group wants to make more money with subscription services. For this, Apple went to Hollywood, among others.

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Apple is expected to launch its own video streaming service and its subscription offer on Monday. This decision highlights the transformation of Apple's business.

For years, the group earns money by selling devices, including the iPhone. But smartphone sales have recently declined and Apple is looking for more and more new sources of revenue.

Apple looks for new sources of revenue

Like one of them, the group made video streaming. About two years ago, Apple hired two of the main makers of Sony TV studios, under whose supervision were produced such tubes as "Breaking Bad". According to US media, the iPhone group has reported so far about two billion dollars of own production.

The most notable projects to date have been a series on a television rivalry at breakfast with Hollywood celebrities such as Reese Witherspoon and Jennifer Aniston. According to the Washington Post, Apple gives them $ 1.1 million per episode, an order of magnitude common to the largest TV shows. And the Hollywood director Mr. Night Shyamalan ("The Sixth Sense", "Glbad") directed a thriller still completely secret.

"Apple is the only company in the world to be able to spend a few million dollars on entertainment and get started without mentioning a marketing or commercial plan for Reese Witherspoon and Mr. Night Shyamalan," an informed insider in Hollywood's Washington Post said. In fact, it remains unclear what Apple's business model will look like for exclusive productions. It's speculated cheerfully. One of the ideas was to make it accessible only on Apple devices. Or should they attract customers for a new video subscription, inspired by Apple Music?

Is the frontal attack on Netflix?

Now, it has been said in the US media but also that it is premature to already consider Apple 's advance as a frontal attack on Netflix. Although $ 2 billion represents a lot of money, last year Netflix spent about $ 8 billion on content, mostly for movies or series exclusively available on the service. Right now, it's even $ 1.4 billion a month, Netflix CEO Reed Hastings recently said.

"The main goal of Apple will be to help, at least for now, others to sell their subscriptions to streaming video and get a share of their revenue," wrote the media reporter. well connected Peter Kafka on the technology blog Recode. Apple may in the future sell bundles of subscriptions – for example, the HBO, Showtime and Starz payment channel in the US – cheaper than individual offers. The "Wall Street Journal" said on Monday night, the shipper subscription should be owed $ 9.99.

Even the messages should come as a subscription

Another announcement on Monday could be a new subscription offer for the news. According to media reports, Apple would at least have the best address to get the "Wall Street Journal". On the other hand, the Washington Post and the New York Times did not wish to participate.

The "Wall Street Journal" had provided a few weeks earlier a report that Apple wanted to prevent publishers from publishing half of the product of its subscriptions, a fierce criticism of the iPhone group of the media industry. It is also speculated on a subscription service that would give access to various paid games. (Mgb / dpa)