Apple has for several years hinted at joining the video streaming service market dominated by YouTube, Netflix, Amazon and other streaming companies and this coming Monday, expectations are that it will announce it’s jumping into the streaming pool.
The company earmarked a billion dollars for a video streaming service and hopes are that it will announce its launch into that market this Monday although it hasn’t yet confirmed it at this time.
The announcement is expected to be made at Apple’s event at the Steve Jobs Theater located on its Cupertino, California campus which is scheduled to kick off at 0 a.m. PT/1 p.m. ET.
Over the past decade, Apple’s focus at its major flashy events has always been on hardware announcements rather than its services – not even at its Worldwide Developers Conference (WDC). But this coming event will be different in that it will primarily focus on its services.
And considering that last year it became the first trillion dollar US company for three months because of its iPhone business, but then it hasn’t been since due to customers holding on to their old iPhones or opting out and purchasing smartphones from Huaweior Oppo. Apple’s revenue is made from two-thirds of its iPhone business. iAnd because of its competition it knows it needs grow in its services business.
Apple needs to grow beyond its current services such as the App store and Apple Music which has been ever increasing thanks to all who own the 1.4 billion devices in hand. Because of that Apple’s services business grew 10 percent and brought in a record $10.9 billion. Apple’s subscribers rose 120 million from the the previous year to over 360 million currently,
And so the next logical step is getting into TV streaming. And Apple has been saying for the last four years that streaming services is the next important direction for them to move into and have been building up to it according to Technalysis Research analyst Bob O’Donnell.
It of course won’t be easy as most smartphone or computer users already subscribe to one or more streaming services already and will they be willing to shell out more money for yet another company?
This won’t be the first time Apple will be into the entertainment business. It joined the ranks in 2007 when it introduced to only the iPhone but also its first Apple TV.
But now Apple doesn’t want to just make the hardware for viewing entertainment. It wants involvement in its content offering that people are accessing through streaming services. Its been rumored that Apple has been working on deals with HBO, Showtime and Starz. And it could also get a cut in revenue from other streaming services if it offers a bundle with them.