Apple will launch video streaming service with HBO and Showtime content

Bloomberg is reporting that Apple is pacing up efforts to finalize content deals with Showtime, HBO and Starz, for the launch of the its subscription based video streaming service. These premium cable TV networks and Apple are still working out details of the contract such as users experience, promotions, and marketing concerns. As Apple, allegedly, plans to offer original movies and TV shows along with third party productions, it’s imperative for the company that these deals are finalized soon. It is speculated that the video service might be launched during Apple’s March 25th event, titled ‘It’s show time’.

Apple Event March 25

Sources report that the company has invited A-list Hollywood celebrities and media executives to the event to market its upcoming services. Apple is expected to unveil a number of services at the event which includes new subscription based video streaming and news services and a credit card in partnership with Goldman Sachs.

Ever since the company had its first ever decline since 2004 in iPhone sales, it is focusing on boosting its services sector as the dominant source of revenue generation. Apple is likely to face strong competition from Amazon, Netflix and Hulu in the video streaming subscription arena, as they are well-established names in the industry. Along with third party productions, these companies also offer original content and have even won awards for them. So, not only does Apple have to work on marketing its service well to gain subscribers, it also has to make interesting content to attract users. Wedbush Securities predicts that to break into the streaming services industry, Apple could gain subscribers by including HBO and Showtime content within its service. This strategy could help gain approximately 100 million subscribers within five years. Currently, HBO content is available on Apple TV through HBO’s own app.

To put in simpler words, Apple’s video streaming service could offer movies and shows from the aforementioned networks in one place. Competitors like Netflix and Hulu are not a part of Apple’s video streaming projects because they have refused to give control of their viewing data or user’s experience to Apple. So much so that Netflix has ended in-app subscriptions via App Store – a move which has cost Apple a hefty share of revenue.

via Bloomberg