In This Article:
There has been no end to the theories and rumors regarding Apple's (NASDAQ: AAPL) entry into the highly competitive streaming video market. The move will put the company in competition with established players like Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN) and Hulu. A number of reports have suggested that Apple budgeted more than $1 billion in 2018 to develop original content, and there have been corresponding reports of high-profile deals with elite Hollywood talent, confirming its spending spree.
More recent stories have indicated that Apple would provide movies and television series for free to owners of Apple devices and offer subscriptions to other steaming providers like HBO, Showtime, and Starz -- all within the TV app found on the iPhone, iPad, and Apple TV.
An intriguing tale has emerged that Apple is planning to launch a global streaming service that could compete with Netflix and Amazon Prime Video as early as next year.
Image source: Apple.
A much more ambitious approach
Apple plans to debut its streaming service in the U.S. during the first half of 2019, and will roll the service out globally in the months that follow, according to a recent report in The Information (subscription required). Citing "three people familiar with the company's plans", the report said that Apple will bring the nascent streaming service to 100 countries, putting the company in direct competition with Netflix and Amazon Prime Video, which are both widely available across the globe.
Amazon Prime Video is said to be available in about 200 countries, while Netflix can be streamed in more than 190. This reality leaves Apple playing catch-up in a market that is dominated by the incumbents. Netflix, for example, has a head start of more than a decade in terms of technology and penetration, so Apple finds itself at a decided disadvantage.
This latest report corroborates earlier suspicions that Apple would offer subscriptions to other services via its app, similar to a strategy that Amazon has employed called Amazon Channels. Prime customers can sign up for the likes of HBO, Starz, and Showtime as well as specialty services like BritBox, Cheddar, and Mubi.
Currently, Apple offers subscribers a way to watch many of their favorite shows, including programs from some linear TV channels like ABC and NBC. It seems Apple wants to become a one-stop shop for viewers, also providing access to its own original content and that of other streaming services like HBO and Netflix. This approach would help to differentiate the service from some of its existing competitors.