Apple to Compete with Netflix, Amazon Prime & Google Games
In a star-studded rollout for new Apple products, CEO Tim Cook enlisted Oprah Winfrey to help with the announcement of three new subscription services. Apple, one of the largest investors in AI in the world, depends on consumer sales to support its research.
On Monday, March 25, Apple’s announced a TV service, gaming bundle, and all-you-can-read magazine subscription at its campus in Cupertino, CA. Apple also announced an Apple-branded credit card in partnership with Goldman Sachs.
“We’ve also been creating a growing collection of world-class services, and that’s what today is all about,” Cook said.
In a story on TheStreet.com, Jacob Sonenshine and Nelson Wang wrote that the tech giant spent the most time introducing Apple TV Plus, its new subscription service featuring original video content. Apple leveraged the appearance of Hollywood A-listers such as Oprah Winfrey, Steven Spielberg, Jennifer Anniston, Reese Witherspoon, Steve Carrell and J.J. Abrams to discuss their projects for Apple TV Plus.
The service will repurpose content from HBO, Showtime, Stars and Epix when it launches this fall, as well as original shows. The subscription price depends on whether users subscribe to each channel singly or buy a big bundle. Investors approved of the announcement and shares surged 40% the day of the announcement, according to reports. The stock had lost value after iPhone sales were below expectations in the first quarter, due to tariffs on Chinese-made goods that affected sales in China and the United States. Analysts say the addition of subscription services is a good sign for Apple because they provide long-term growth.
The total impact on profitability, however, will depend on the price points Apple chooses for the subscription service, according to analysts quoted on Benzinga.com.
Tim Cook also shared information about Apple News subscription service, saying it will include the likes of Wired, Popular Science, National Geographic and Essence. Apple News+ also includes access to the Los Angeles Times and Wall Street Journal content. Apple said that the subscription includes more than 300 magazines.
A Titanium Credit Card
According to cnbc.com, the Apple Card uses the Mastercard network, and is operated by Goldman Sachs. Neither Apple nor Goldman Sachs will use personal data for advertising, Apple said.
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