Apple is in the late stages of preparing a new video streaming service for its device owners. The way that the service is described in a recent report shared by CNBC, makes the streaming service sound similar to Amazon Prime Video. However, Apple will have some free content available to its device owners (at least initially), as well as paid-for bolt-on channels in the app. With the new platform, Apple says that the video watching app will be unified for consumer convenience - and Apple will take quite a large cut of the fee anyone pays for an over-the-top video service - kerching…
A multitude of Hollywood stars have been invited to a glitzy launch for Apple's new video streaming service, reports Bloomberg. At an event on 25th March the iPhone maker will host an event to unveil both video streaming and news subscription services. It is claimed that "has created dozens of original programs so far," and will buy in other TV shows and movies. Initially the content will be free, with paid plans being structured for the summer, reckons Bloomberg.
How it works will likely be something like this: new content will be integrated into the Apple TV app, here you will be able to subscribe to Apple's original and bought streaming content and bolt-on channels like Starz, Hulu, and CBS/Showtime. At the moment Apple takes a 15 percent cut on revenue from customers that sign up to HBO Now, Netflix, and other streaming apps through the App Store, but it will be seeking a 30 per cent cut for space within its TV app, according to CNBC sources.
At the time of writing, the popular Netflix TV and movies streaming service seems to be resisting the lure of the Apple TV app, and there are signs that HBO isn't going to be ready for launch either. CNBC sources indicate that Apple has offered different terms to HBO than Amazon did for its inclusion in the channels list.
Only time will tell if Apple makes a winner out of this initiative. It is thought that Apple has already spent $1bn on content in the past year (however, that's quite small compared to the $8bn Netflix shows and movies budget), so it will be hoping to make a splash and significant market grab in 2019.
