Apple TV+ might be a threat to Spotify
Contrary to popular belief, Apple TV+ is a threat to Spotify and not Netflix.
Apple TV+ isn’t Netflix’s competition. It might be more of a threat to Spotify.
Music streaming & OTT platforms don’t compete but a deeper look would tell a different story.
With deep pockets & 1bn+ active devices, many expected Apple TV+ to be an actual competition in the streaming space. But its poor initial catalog might have left people wanting more.
However, Apple has a host of services complementing the TV+ & it was evident that they’d be bundling all of their software services into one but not many expected them to do it this soon.
Now imagine a subscription program — iSoftware — where you pay a single fee for accessing any of Apple’s services from music, TV+, news+, arcade, etc.
Strategically, any of Apple’s services need not be better than its direct competitors. They just need to create enough value together as iSoftware for the users to pay.
Now if users have iSoftware which gives them music, games, TV, and news, they’d be encouraged to leave solo apps like Spotify.
You could disagree but there’s a precedence. Enterprise users choose Microsoft’s Office 365 (and not Microsoft Teams) over Slack.
Apple already makes ~$50 bn/year from services. Solo apps dependent on iOS need to start worrying.
This article originally appeared here.
— — — — — — — — — — —
Views expressed in this post are my own and do not reflect those of my employers, present or past.
I try to breakdown the hottest trends in technology, translate the business use cases involving tech buzzwords and analyze the business strategies that power the tech industry today. You can follow me on here Medium and LinkedIn.
