On Monday we finally find out where Apple's billions of dollars have gone.
This is the amount that the company earns for a video streaming service that it has not yet confirmed. For years, rumors of Apple were popping into a market dominated by YouTube, Netflix, and other streaming companies. It's even spoken up the shows and celebrities it's cast. Nevertheless, Apple has not actually said what all these partnerships are for.
We'll find out Monday when Apple hosts an event at Steve Jobs Theater on its campus in Cupertino, California, to reveal its long-awaited video offer. The event starts at kl. 1
For Apple, the launch is the first time it makes its service sector the center of a major event. It has been used for the first three days of this week in an unprecedented flood of hardware communications made via press release fromto a and . In the last decade of Apple's flashy launches, none – not even its annual Worldwide Developers Conference – have focused primarily on services.
The company must now highlight these offers. Last year, Apple became the first US American company, but fell below this brand three months later. Its iPhone business seemed to be on an almost infinite increase – until suddenly it wasn't. Apple accounts for about two-thirds of its revenue from the iPhone, but people stay longer on their devices, and in places like China, they are increasingly choosing phones from Apple rivals such as Huawei and Oppo.
Apple knows it's going to grow its operations beyond the iPhone, especially its service sector. The area, which includes the App Store and Apple Music, has been increasing thanks to all of us, who own the 1.4 billion active Apple devices out there. In December, Apple's revenue of 19 percent rose to a record $ 10.9 billion. USD. Apple Music now has over 50 million paid subscribers, and across all its services, Apple has 360 million subscribers, an increase of 120 million from the previous year.
Getting into TV streaming is the next logical feature of the company.
"They have said in the last four years [earnings] worth calling for how many services will be important to them," Technalysis Research analyst Bob O & # 39; Donnell. "They've built up for this."
That doesn't mean it's going to be easy. Apple joins a crowded field, and many of us already train money every month for more streaming providers. Is there room for another?
Apple refused to comment on its event.
From hobby to center stage
Apple has been dabbled in entertainment for more than a decade. The company introduced its first Apple TV in 2007, the same year it launched the iPhone. In the early days of Apple TV, Apple placed its streaming media box as a "hobby".
Apple updated Apple TV in late 2015, releasing it with its new TVOS software that allows developers to create apps and a new remote that worked with Siri. It was the new software that made Apple TV a more than a stupid streaming box.
The update came at a time consumers began to ditch their traditional cable subscriptions in favor of smaller streaming bundles. On-demand television services such as Netflix, Amazon Prime and Hulu offered thousands of videos for streaming as needed, while services like Sling TV, DirecTV Now and YouTube let people watch live TV over the Internet. Increasingly, Apple TV, Roku boxes and Chromecasts were used to view the content.
Now, Apple will not just make hardware for displaying entertainment. It also wants to make the content people access.
The key to Apple's success in streaming is just what is offered at its service. No one pays for content they don't want to see.
It entered the market in 2017 with a few original shows for its Apple Music service. It included the Planet of the Apps, which was widely placed, and Carpool Karaoke, which started life as a virus segment on the CBS & # 39; The Late Late Show with James Corden. (Editor's note: CNET is owned by CBS, which also produces the series.). Both flopped.
Apple has long been rumored to work on a virtual cable service that allows subscribers to select and select their channels. But it never came, and that's probably not what Apple introduces Monday.
Instead, it is expected to release a more Netflix-like service containing its own content and video from partners. Apple has allegedly sought to deal with networks such as HBO, Showtime, and Starz to license a library of already released content. (Note: Showtime is owned by CBS, CNET's parent company.) It can also bundle other streaming services and reduce their revenue.
Netflix, for one, will reportedly not participate. "We want people to see our content on our service," Netflix CEO Reed Hastings said Monday. "We have chosen not to integrate into their service."
For its own content, Apple has at least 30 projects in the works, five of which are eligible to go. Its first $ 1 billion investment in content could balloon to $ 4.2 billion by 2022, according to a long-term estimate by Apple Apple analyst Gene Munster, now at Loup Ventures.
Apple's announced partners include a multi-year deal with Oprah, Reese Witherspoon, M. Night Shyamalan and Steven Spielberg. The company has hired two top executives from Sony Pictures Television to lead the effort.
Show me the money
To show that it's really serious about services, Apple must make its new TV streaming offer work on non-Apple devices. And it can't be that expensive that no one wants to subscribe. Already Americans watching video online subscribe to an average of three streaming services, according to a Deloitte survey.
Some analysts believe that Apple's service could be free for Apple device users, but it is more likely to offer a free trial. For Apple Music, Apple offers an extended free trial and is the standard for most streaming video services that provide new users with a free introductory period.
One way Apple could get more subscribers is to combine their TV service with Apple Music or with an iCloud account. Currently, Apple Music costs $ 9.99 a month, while the iCloud storage costs 99 cents a month for 50GB (an amount lower than the current lowest capacity – 64GB – on Apple's new iPhones), $ 2.99 for 200GB or $ 9.99 for 2TB.
There is also Apple's shake-up news subscription service, which is also expected Monday, which could be paired with its music and TV offers. The service is expected to be based on Apple Acquisition Texture, called a "Netflix for Magazines" which offered unlimited access to magazines and news for a fee.
"Should it be the straw that broke the camel's back that makes me think about what I'm already paying for?" Creative strategies analyst Carolina Milanesi said. "If you pack it, the value becomes more fluid."
Amazon packs its music and video services into its Amazon Prime two-day shipping membership, which costs $ 12.99 for a monthly subscription or $ 119 for the annual pass. Some people pay the amount only for the shipment, but others want it for the video service, music or other benefits.
Ultimately, to get us all subscribed, Apple has to offer something we can't get anywhere else. We'll find out Monday if that's what it's built.