At Cupertino campus on Monday for an event, Apple has increased peoples speculation that the giant tech could be on its way to expand Apple TV business. The analyst has said that Apple needs to increase its sales and make more money through diversification of the company’ s products. Apple needs to lunch a challenge in an unforgiving media landscape to the likes of Netflix.
Apple TV Background
Apple’s first TV was its Apple TV console in 2017. However little success was recorded in the sales compared with its iTunes services. Says analyst. According to Jim Nail, principal analyst at Forrester, Apple TV device and the content library has existed for many years following the revolutionization of that industry. People patronize TV and music content more but using the music model won’t have the same impact.
Specifically, it’s hardware is for renting and selling content using iTunes as a medium. James Corden, however, was moved by emotions on Paul McCartney’s Carpool Karaoke. Some original title has been released through Apple music such as the Carpool Karaoke and the planet of the Apps. A lot has also been achieved according to Canalys analyst Ben Stanton. Starting in 2007, Apple has distributed many movies and TV shows. Canalys, continued by pointing a few streaming platforms like Amazon, Prime, Netflix, and Disney; with time, as the major threats to Apples iTunes movies.
In the past, that was a great business but now Apple will need to evolve this dying business.
Apple relationship with several other TV networks is contributing to its difficulty in launching a subscription service. Now Apple must have to upgrade its content beyond the normal.” Mr. Stanton contributed. But some big players have said they are not on board. Netflix has already canceled the idea of making its TV programmes and films available through Apple’s subscription service, with chief executive Reed Hastings saying: “We prefer to let our customers watch our content on our service.”
What the public needs to hear from Apple
Apple has spent about $2bn on stars such as Oprah Winfrey, Jennifer Aniston and Reece Witherspoon for original content.
There are records of directors producers who have been reportedly signed up too such as M.Night Shyamalan, J.J, and Abrams. Steven Spielberg’s Amblin Television has also been signed up; says showbiz publication Variety. Among those hired are Jamie Erlicht and Zack Van Amburg, two well respected Sony pictures executives to deliver their original content. Will Apple upgrade its TV device? According to Jim Nail of Forrester, Apple is guarding the details that have kept it from being judged. The question remains if Apple will partner with Smart TV to make Apple TV more popular and widely available.
What subscriptions are available on Apple TV? Does it include features like Live TV? What about the current episode network programs and sports?. Stay tuned. However, the cost determines it all. According to Reuters, Apple may allow its subscribers to subscribe to CBS, Lions Gate, and Viacom. Discussions are also ongoing with the Thrones maker HBO to be incorporated into its service.
What about Apple rivals?
Netflix happens to be the most rival to Apple, Ben Stanton said. Recently, the two companies are not getting along well. Now Netflix is moving its subscription model away from the Apple App store. It will be difficult for Apple to benefit financially from Netflix customers specifically on its iOS operating system. Talking of content, Amazon Prime has a lot of upcoming series. Said the JRR Tolkien’s Lord of the Rings mythology, Radio Times reports. One of the features of Amazon Prime channel is where it’s consumers basically in the US can sign up to third parties like the HBO and Showtime. HBO’ is ready for premiere season eight of its smash hit series Game of Throne come April this year.
From a recent announcement made by the BBC and ITV, they disclosed that talk over launching a service called Britbox in the Uk is ongoing.
Why did Apple consider going on TV?
Ben Stanton said that slow in smartphone sales have been detected. They are losing out to major manufacturers and most companies are falling back on other businesses. It could be that Apple needs a TV business to keep its feet. Companies like Huawei has an infrastructure business, Samsung has a TV business and a profitable component division but Apple has only iPhone and nothing to fall back on, Says Ben. “Tim Cook, Apple chief executive said the company will focus on selling services and not hardware as a major change of strategy.
Apple now is targeting on pushing the number of iOS users so that it could sell services to them. Apple hopes to achieve this by letting go of some benefits in its iPhone business, Mr. Stanton says.
Tom Harrington of Enders Analysis contributed by pointing to the need for Apple to diversify considering its drop on sales. According to him, ” it makes sense”. With a lot of business potential out there, Apple hopes that Apple TV will be a major shift considering the number of iPhone and iPad users. Amazon Channels has been successful for Amazon and Apples hopes that Apple TV will be the same.