Apple is planning to launch a news subscription services on March 25th 2019 at an event in Cupertino, as per BuzzFeed. Similarly, sources close to the project have told Bloomberg that the company is set to introduce a video streaming service as well at the event. Invitations to Hollywood celebrities like Reese Witherspoon, Jennifer Garner, Jennifer Aniston and Director JJ Abrams have also been sent out, according to the sources.
Apple’s Video Streaming Service
The video streaming service is expected to offer TV shows and movies, which will include both in-house and third-party productions, for a monthly subscription fee. The launch date of the video service is still not clear; Bloomberg’s sources say that the alleged service is scheduled to begin in summer this year. According to The information, Apple had asked studios and networks to be prepared for a launch in April. There is no information on the cost of the monthly subscription.
To prepare for the new video streaming service, Apple has already partnered with popular TV manufacturers like Sony, Samsung and LG and introduced features like AirPlay 2, iTunes app and more on their platforms.
Apple’s News Subscription Service
Furthermore, the alleged news service will be integrated in the Apple News app. iOS and macOS users will be able to subscribe to their favorite titles for a monthly payment. BuzzFeed has reported that the News service is set to launch on 25th March, in an event in Steve Jobs Theater at Apple Park Campus. It is rumored that the news service will be priced at $10 per month. The amount will be divided half and half between Apple and the publishers, subjected to the number of subscriptions.
Apple has made no official comments on the launch of both services, video and news. So, we will have to wait till 25th March to know for sure. Having said that, if Apple does begin to offer the aforementioned services, they will be investing in products other than hardware to generate revenue. Although the company made an impressive $84.3 billion revenue in the fourth quarter of 2019, it was 5 percent less than its best quarter last year. As per Apple’s latest quarterly results for 2019, services revenue grew by 19 percent and iPhone revenue showed a decline. Therefore, to expand the company’s services seems like a lucrative initiative. Now the question is whether Apple’s services will beat the competition or not.
Apple has been fiercely competing with Spotify to in the music streaming service arena, so it’s not their first foray in the modern services market.
Netflix and Amazon are already established video streaming companies. Netflix, this month alone, released Instagram stories integration exclusively for iOS and introduced Smart Downloads too, to serve its subscription base. Will Apple be able to attract and retain subscribers by delivering competitive video services? Time will tell.