Apple today formally announced its launch plans for its new TV streaming service, Apple TV+, which will be available starting on November 1st, 2019 t and will cost just $4.99 per month for the whole family. The service will be available across Apple’s platforms through the Apple TV app.
As an unexpected surprise, Apple CEO Tim Cook announced that when buy an Apple device — including an iPhone, iPad, Mac or Apple TV — you’ll get a year of Apple TV+ for free.
A higher price point of $9.99 per month was previously reported by Bloomberg, which would have made Apple TV+ more expensive than rivals like the $6.99 per month Disney+, $5.99 per month Hulu (with ads), or the $8.99 per month single screen Netflix plan. It is, however, less expensive than Netflix’s $12.99 per month standard plan.
The $4.99 per month price undercuts all. And bundling a free year with new Apple hardware should boost sales as well.
Apple’s entry into the TV streaming market has been public for some time thanks to leaks and reports from Hollywood media news sites and announcements of programs from Apple itself. The company then officially introduced Apple TV+ this March at a special event focused on the company’s services and subscriptions.
The event brought out a cavalcade of stars to discuss their involvement in the new streaming platform, including Steven Spielberg, Jennifer Aniston, Steve Carell, Reese Witherspoon, Jason Momoa, Alfre Woodard, Kumail Nanjiani, J.J. Abrams, Sara Bareilles, and even Big Bird.
Some of the more anticipated shows arriving include a morning show drama starring Reese Witherspoon and Jennifer Aniston; a Witherspoon-backed comedy based on Curtis Sittenfeld’s “You Think It, I’ll Say It;” a thriller called “Truth Be Told” starring Octavia Spencer; a revival of “Amazing Stories” exec-produced by Steven Spielberg; a new space drama “For All Mankind” from “Battlestar Galactica’s” creator Ronald D. Moore; a show from “La La Land” director Damien Chazelle; an adaptation of Isaac Asimov’s “Foundation;” original shows produced by Oprah Winfrey; a psychological thriller “Servant” produced by M. Night Shyamalan; an animated series called “Central Park” from “Bob’s Burgers” creator, and many others.
(Here’s a full list.)
Despite the numerous high-profile names attached, Apple’s service isn’t really a Netflix alternative. There’s not a big back catalog of licensed TV shows and movies, as you’d find elsewhere. Instead, the focus is on original content. If you want more, Apple TV Channels offers paid subscriptions to other premium services.
As Apple SVP Eddy Cue told attendees at SXSW 2018: “we’re not after quantity, we’re after quality.”
Services, like Apple Music, iCloud and AppleCare, have been a bigger focus for Apple in recent years, and may even become its most profitable sector, according to reports. As of its third-quarter earnings, Apple reported its services revenues, which include App Store fees, subscriptions, and other online services, had grown to $11.456 billion. At the same time, the iPhone made up less than half of Apple’s business.
The slowing iPhone sales have to do with the quality of the devices — even older models are still very good, and the improvements in new versions are not enough to prompt as frequent upgrades. To diversify, Apple has been focused on growing services revenues with launches like Apple News+, Apple Arcade, and now Apple TV+.
Apple is also clearly willing to spend in order to grow its media business further.
Last year, Apple had said it would spend around a billion dollars acquiring ten shows for the streaming TV service. But it later signed deals with Oprah, Steven Spielberg, and Sesame Workshop, which likely pushed that number much higher. A newer report from the Financial Times in August claimed the figure was now around $6 billion instead.
What we don’t yet know is how well Apple’s investment will attract new subscribers in a market where there’s an increasing number of services offering premium, award-winning on-demand content, including Netflix, HBO, Hulu, and soon, Disney+.
The few trailers Apple has released so far have been fairly iffy — the first one of “The Morning Show” almost felt like a parody, while the latest, “Dickinson” seems to have turned the celebrated poet Emily Dickinson into a CW-style feminist punk rock hero.
Apple said the trailers had been watched over 100 million times.
At the event, it unveiled the trailer for the post-apocalyptic drama starring Jason Momoa, “See,” which is Apple TV+’s take on Netflix’s “Bird Box,” apparently. It takes place in a world where all have gone blind.
As media critics finally get their hands on the shows for reviews, we’ll know more about whether Apple TV+ is worth the price.
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