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Apple Enters the OTT Platform with Apple TV+ to Keep users in the Ecosystem

Apple TV+

Reportedly, Apple has committed $6 billion to its original TV shows and movies budget for its upcoming Apple TV+ service, according to a new report from the Financial Times. Apple TV+ is an upcoming over-the-top ad-free subscription video-on-demand web television service announced by Apple Inc. in 2019. Several major celebrities involved with Apple TV+ projects appeared on-stage for the announcement, including Jennifer Aniston, Oprah Winfrey, Steven Spielberg and Jason Momoa. The association of such big celebrity names with the new service has captured the attention of online content viewers.
We still don’t know a whole lot about Apple’s TV Plus, which has yet to get pricing or a release date. But it’s expected to launch sometime in the next two months, and Apple has built up an office in Culver City in Los Angeles to manage its growing TV and film ambitions. There’s no word yet on pricing for Apple TV.
Apple TV+ content will be viewable through Apple’s TV app, which is slated to become accessible to numerous consumer electronics devices, including those of Apple’s competitors, during 2019. Apple TV+, along with the simultaneously announced Apple TV Channels a la carte premium video subscription aggregation service, is part of the company’s concerted effort to expand its service revenues by making recurring monthly charge distributed video content available widely to the public.
The latest development is an exponential jump in Apple’s budget for original shows as the company earlier set aside $1 billion for bringing renowned creators and actors to its platform. Apparently, with this move, Apple is looking to capture the online streaming space, which is currently dominated by Netflix, HBO, Amazon and Hulu.
The obvious goal here is to leverage the massive network of iOS owners to transform a subset of them into loyal subscribers of Apple services, which promises to bring in recurring revenue and help Apple offset its falling iPhone sales.
Looking to create an immediate impact, the company is reported financing the most expensive show ever made, starring Jennifer Aniston, Reese Witherspoon and Steve Carol. Spending a lot on content is one way to compete against companies like Netflix, Amazon, and Disney.
However, at $6 billion, Apple’s spending doesn’t quite match the $15 billion that Netflix is expected to shell out in 2019, but Apple is rumoured to be offering more generous payment terms to help it win deals for appealing content.
Online content space has witnessed a meteoric growth in the past 7-8 years. Affordable smartphone, easily accessible and fast internet speed has contributed to the spread and popularity of web content and live streaming videos. As a result, the content quality and quantity has grown significantly, it’s good for actors, writer and directors. Also, lenient censorship on online media platform has granted space and platform to movie creators which they always asked for.

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  1. […] Apple Enters the OTT Platform with Apple TV+ to Keep users in the Ecosystem August 22, 2019 […]

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