Netflix, Hulu and HBO Go for it! People are exhausted from streaming services
Even if you cut the cord with Netflix, Hulu, HBO Go, and others fighting over all your dollars, it can look like 1,000 video subscriptions dying.
Apple iPhones don’t sell like they used to.
The gravy train is on the decline, and Apple knows it, so to make up for lost revenue, Apple wants to receive recurring payments from you every month. And more than it takes now from iCloud, Apple Music, and Apple Care.
Yes, it’s Showtime.
Apple has again summoned the media to its headquarters in Cupertino, California. Monday’s “Showtime” event will likely be a preview of a new $ 9.99 monthly entertainment subscription service, featuring shows and movies like Steven Spielberg, Oprah Winfrey, and Brie Larson. Plus, a new News subscription service, featuring the best of publications like the Wall Street Journal and People, is also likely, for $ 9.99 per month.
The question many of us are asking now: is there a wholesale contract? How much does Apple think we’re willing to pay?
The place to find the entertainment service is probably on the Apple TV app. It is available for the set-top box and on iOS devices like iPhone and iPad. Reporters are eager to hear how Apple plans to expand its base to include TVs and other set-top boxes like the Roku and Amazon Fire TV Stick.
But most of the attention will be focused on the big Hollywood actors that Apple is likely to fly to its campus. What stars will be there? It’s the guessing game many are playing this weekend.
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It’s important to remember why Apple is doing this, even though it’s late in the day for the party. Netflix started in 1997 and now dominates streaming, followed by Amazon Prime Video, Hulu, CBS All Access and others. Disney and Warner Media are launching new services in the coming months. Consumers, as Deloitte pointed out this week, can only manage a limited number of subscriptions.
Will Apple consumers really afford $ 30 per month for entertainment, news, and pre-existing Apple Music service?
“Getting consumers to buy a monthly subscription for $ 30 is just too difficult,” says Tim Bajarin, analyst at Creative Strategies. “Apple has to come up with something else.”
Right now, Apple sells more iCloud storage plans, Apple Music subscriptions, and iTunes movie rentals than iPads, Mac computers, Apple watches, or accessories like AirPods.
Services, the division that integrates monthly plans, generated more than $ 10 billion in the last quarter. It still has a long way to go to catch up with the iPhone, which grossed just under $ 52 billion in the quarter.
Seven years after Spotify, Apple Music launched in 2014 as a primarily copy service that ended up garnering over 50 million subscriptions by targeting its base of 1.4 billion iPhone users.
Can Apple achieve even bigger numbers with entertainment and achieve iPhone-sized success?
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Andrew Wallenstein, the co-editor of the show business Variety bible, says it’s unlikely.
“They’re not going to take on Netflix,” he said. “The market is too crowded and Apple is too late. But they have the capacity to carve out significant market share.”
Apple doesn’t have to beat Netflix, he says, but “just increases engagement with its devices.”
In the meantime, if you missed it, here’s what Apple announced this week on the hardware side:
—New iPads. Apple introduced two new editions, an iPad Mini and the iPad Air, which sold for $ 399 and $ 499. We’ve gone through the full list of the five available iPads, priced between $ 329 and $ 999.
—New iMacs. Apple has also refreshed the iMac line of standalone computers, with new models at 21.5 inches and 27 inches, starting at $ 1,299 and $ 1,799.
—Second generation AirPods. The small Bluetooth earpiece offers longer battery life and the ability to work with the personal assistant Siri, but no new tools to keep them in your ear.
In other new techniques this week
Facebook Scandal of the Week: News site KrebsOnSecurity discovered that hundreds of millions of Facebook users whose account passwords were stored in plain text could be searched by more than 20,000 Facebook employees – in some cases, dating back to 2012. Facebook then admitted the flaw, but said it was fixed.
Google has launched a new streaming game service. Google’s Stadia is looking to compete with Microsoft, Sony and Nintendo with a new service set to debut in the fall. Mike Snider points out that Google “promises new ways to connect to games, including a Play button on YouTube videos that will launch you from video in that game.”
Automated calls: help could come! AT&T and Comcast have said they can authenticate calls made between the networks of two different phone providers, a potential first in the industry and the latest in the long-standing battle against spam calls.
This week’s Talking Tech podcasts
–Camera or smartphone? Liz H. Kelly says to only use the cameras for big jobs; I speak for the smartphone in this debate with the author of the new book, 8-Second PR.
–Ok Google, let’s ask Alexa a few questions. Turn the roles over to the assistants.
Follow USA TODAY’s Jefferson Graham (@jeffersongraham) on Twitter