Business

/

ArcaMax

Why is Apple bundling its subscription services?

By Wendy Lee, Los Angeles Times on

Published in Business News

"Apple is the true new kid on the block when it comes to paid video streaming," Cybart said. "It's a legitimately good start. ... Because they're coming from literally zero subs, everything that they're doing, it could end up having a bigger impact."

Unlike other companies with streaming platforms, Apple makes the largest portion of its revenue through the sale of iPhones. Last year, the company offered buyers of new Apple devices a free one-year subscription to Apple TV+.

But other analysts note that Apple TV+'s subscribers still fall short compared with larger competitors such as Netflix and Disney+.

"They're not skyrocketing at the end of the day," said Brahm Eiley, president at the Convergence Research Group.

When Apple TV+ launched last year, it started with just nine shows.

"The biggest issue for them is they only have so much content. You can burn through their content pretty quickly," Eiley said. "Other players have come out with vast amounts of content."

 

Some analysts have questioned Apple's long-term commitment to original productions, considering that it requires massive capital investment to compete against larger players like Netflix.

"There's no really major return on investment for Apple at the moment on this," Eiley said. "So it's not clear to us what the real Apple strategy is, besides sell more boxes."

Apple on Tuesday announced more tie-ins from streaming video to its hardware devices with Apple Fitness+, a new $9.99 monthly subscription service that showcases video workouts.

Apple Fitness+ works with the Apple Watch, showcasing onscreen in real time fitness analytics the watch collects.

...continued

swipe to next page
(c)2020 Los Angeles Times, Distributed by Tribune Content Agency, LLC.