Tomorrow, Apple will present its services strategy in an event that is expected to uncover its Apple News subscription and its TV streaming platform. According to a long report by The Wall Street Journal it sounds as if the company has negotiated with the premium channels HBO, Showtime and Starz to offer a standardized $ 9.99 monthly subscription, each reportedly charging $ 9.99 for news service, and will probably charge for access to its original content, which is widely reported that it would make Apple users free.
Apple is expected to largely disclose its original content efforts tomorrow, and WSJ says it will showcase some of the upcoming TV shows at its event and those sources say Apple will charge a fee for that programming. The shows will live on a new TV app described as a "Netflix killer", and will offer an easy way for users to sign up for premium channel subscriptions such as HBO, Showtime and Starz.
The company has worked to attract the aforementioned networks to its service, through which Apple will sell subscriptions with a standardized $ 9.99 monthly fee for each one. If it is correct, there will be a discount for channels like HBO and Showtime, which respectively charge $ 1
Apple reportedly negotiated with manufacturers to take the service to Roku and smart TVs, which would allow the company to set its programming to a wider range of customers. In a surprise move earlier this year, Apple announced that it would bring iTunes to a number of smart TVs, which would allow Apple to turn its programming into new customers. Apple has already used this strategy for Apple Music, allowing users to stream music on Amazon Echo speakers and Fire TV.
In addition to the streaming TV effort, Apple is reportedly charging $ 9.99 for its new Apple News service, described as a "Netflix for news". The app allows users to access a number of publications for a single monthly fee, even if some major publishers, such as New York Times and Washington Post do not intend to participate. Last year, Apple bought Digital Magazine Service Texture, which offered readers access to 200 newspapers at the same price. The company will also report a gaming subscription service that will bundle iOS user games during Monday's events.
WSJ also describes Apple's push in services, which comes after the company reported its first sales decline in January over a decade. It describes Apple CEO Tim Cook starting to "pursue the strategy hard by the end of 2017" in an effort to move the company in that direction and compare it with Steve Jobs' move to move the company to the manufacturing of mobile devices such as the iPod, iPhone, and iPad. The company faces fierce competition from competing manufacturers worldwide, while the content and services market has continued to grow in recent years.
Last week, the Motion Picture Association of America reported that streaming TV subscriptions surpassed cable subscriptions and that the home entertainment market has increased by 24 percent and 34 percent, respectively, in the US and global markets. But as Apple jumps into the original content market, it also stands against many competitors, such as Amazon, Disney, NBCUniversal and Netflix, all of which produce their own exclusive content, or are about to launch their own platforms.