Apple’s New Video Streaming Service Expected to be launched in April, Video Partners Viacom, Starz, and CBS on Board
Reports and speculation about Apple’s video streaming subscription where going around the corners for years now and finally Apple is all set to launch its new TV subscription service. Reports say that Apple is expecting to launch its new service in April or in May.
Apple currently is working in the final development phase and getting its new video streaming services ready for deployment. The new video streaming services include free original content feature basically for device owners and offer subscription service for users to subscribe to other digital services. Subscription TV series are offered by Viacom Inc., CBS and Lions Gate Corp’s Starz along with its original content.
Major video streaming partners like Netflix and HBO are not expected to be the part of it, while the services of Netflix Inc. and Amazon.com Inc. Prime video is most likely to be damaged, reports according to a few reliable persons.
Apple had planned about the new video services and is spending almost $2 billion in Hollywood to form its video content and singing content with star-like Oprah Winfrey. The new video streaming is to be launched worldwide.
The main goal of the service is to enable customers to sign up for the existing streaming products and allow them to access it on their iOS TV application, just like Amazon’s Prime Video Channels. Apple seeks to simplify the mobile video viewing feature by assembling all video content in a single app rather than allowing the user to install various apps for every service. It is quite an important step to counter its rivals Amazon’s Prime and Netflix Inc.
According to Bloomberg, Apple is expected to launch both of its service namely, new video service and subscription service on March 25 at a service event. Apple Inc. has already invited big Hollywood celebrities like Reese Witherspoon, Jennifer Aniston, director JJ Abrams and Jennifer Garner for the event.
The service is likely to be distributed across the various Apple App stores and will be available in 100 + countries.
Apple Inc. is careful about the plans and how is it going to distribute the shows is still a secret. The investors have started to focus on the revenue from the paid subscriptions as an alternative means for the increase in iPhone sales. From the holiday season onwards there is a decline in the sale of iPhone’s for the first time in its history during last year.
Some people say that Apple Inc. is negotiating with HBO, WarnerMedia owned by AT&T Inc. to be a part of its new service, although it is not yet been decided and may take a call before the launch of the new service while HBO has not rendered with the same terms that Amazon Inc. has offered it.
Apple Inc. has developed its own service segment which helped them for the plan to launch the television service; the service segment brought $37.1 billion during 2018 fiscal.
The accurate details about the disagreement between Apple Inc. and HBO are not known; however, media companies are worried about the data sharing and revenue split as Apple tries to offer the existing services to the customers in all new way.
Those customers who will subscribe for top video service by using it new streaming services will be applicable for 30 percent cut and Apple is pushing this plan forward. At present, Apple Inc. takes 15 percent cut on revenue from the users who have signed up to HBO Now and Netflix and also other video streaming apps via the App store, people mentioned.
People also say that neither Netflix nor Hulu are part of the Amazon Prime Video Channels and they are even not going to be the part of Apple’s product.
However, CBS, HBO, Starz, Viacom, and Netflix have not responded to the comments.
Apple has worked with various media companies for over the years now, only to access its content. Apple CEO Tim Cook, last month during its earnings conference call has viewed the new service offering.
The customer behavior has changed over time and is currently changing, we believe the change will be significant in the years to come, and there will be a decrease in the use of the cable bundle. We believe that the change will take place at a much faster level during the year, Tim Cook mentioned. We will be stepping into original content world.
We have signed a long partnership deal with Oprah, and as of now, I don’t want to go in-depth about the conversation. Highly motivated people have been hired who are superb confident enough and will be able to talk more on it later.
Apple has decided to play various movies and series on its new service which includes animated movies, reality shows, dramas and comedies which will be collected by Macworld.