Apple TV Plus May Be a Bigger Player Than We First Thought
Investing $6 Billion to launch Apple TV+
Apple’s entry into the Netflix streaming wars may be more significant than some of us first realized.
We know Apple has deep pockets, and Netflix spends in the area of $15 Billion on original content, but now with Disney, Apple and others entering the space it will be so incredible and competitive.
It came out this week, in the summer of 2019, that Apple has spent over $6 billion on new TV shows and movies for its forthcoming service, TV+.
As a futurist, I’m just going to get real and coin a term for the streaming wars. I’m going to call it NADA. This will stand for Netflix, Amazon, Disney and Apple.
Apple’s launch of its streaming platform will launch this fall. NADA and the rise of Roku also complicate the ability of Netflix to compete as Apple, Disney and Amazon all have deeper pockets in theory than Netflix can sustain as original content evolves over the next five years.
The Financial Times was the first to report the story that Apple has committed to spending more than $6 billion on original TV shows and movies for its forthcoming Apple TV+ service. To come out of the gate that hard means Apple is very serious about its walled garden approach and could eventually create its own Apple subscription service for its entire ecosystem like Amazon Prime.
Disney and Apple will Both Undercut the Price Range of Netflix
Disney’s gaming platform is expected to cost about $5 dollars a month. As for Apple TV+, it will reportedly launch by November for about $10 per month. This is substantially cheaper than Netflix in North America and could see Netflix subscriptions drop as the space quickly changes.
Apple+’s subscription price was first reported by Bloomberg. So circle that date: November 12th, 2019. Apple’s pivot to services is really going well with wearable tech, so it will be interesting to see how it does with show streaming and its own gaming platform.
It’s unclear to me if NBC Universal or CBS-Viacom can possibly compete with the NADA ecosystem in the forthcoming streaming wars. Can Amazon with its Lord of The Rings spin-off attract mainstream audiences? And how will possible Chinese entries competing with NADA globally do in the 2020s?
Apple TV+ appears to be investing heavily in a Morning Show and quite a few shows with a science fiction bent, not too different from a lot of the Netflix originals you might find today and even in Amazon Prime Video’s entry into space shows. That’s an odd trend for original content in the streaming wars.
Apple boasts a wonderful premium ecosystem with 1.4 billion active Apple devices out there. It’s strong in the Apple TV space and has a significant smart home presence along with a Services and wearables sector that’s surprisingly strong all around.
Roku, meanwhile, as a streaming platform appears to have a good start with advertising revenue. It will take NADA some time to figure out a complementary advertising strategy, but it’s another reason why Amazon wants to be a major player in the streaming wars, to bolster its surging advertising revenue and how it takes on the digital Ad duopoly of Google and Facebook.
Whatever the case may be, Apple TV+’s entry is exciting for consumers, as it soon won’t be the Netflix ecosystem your grandaughter told you about. A NADA streaming war ecosystem means cable cutting will continue at a frantic pace and many households will have several NADA players and eventually may the best content win.
Not So Just Netflix Anymore
The combined weight of Disney and Apple alone will change our reliance on Netflix's original content, perhaps forever. If you include music and video, Amazon is on pace to spend about $7 Billion. Disney’s quality and low price could really hit Netflix and Amazon, I think, ironically also hitting us on November 12th.
Amazon and Google previously feuded over allowing the YouTube app onto the Fire TV platform (resolved Spring, 2019) and, oddly again, Disney+ may not even be available on Fire TV devices.
Whatever the case may be, NADA means more of us might begin to view Netflix as the expensive uncle of streaming that’s just not so good anymore.
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