Apple could launch a Netflix competitor early next year, although success is no guarantee

Apple could launch a Netflix competitor early next year, although success is no guarantee
A number of times we have told you that Apple is aiming to hit $50 billion in services revenue by 2021 from 2017's $30 billion. The company is forced to focus on services as iPhone shipment growth is waning. In fact, Apple will no longer release the number of handsets it sells during its quarterly earnings reports. So it is up to services like Apple Music and the revised Apple News to bring in subscription dollars. The latter is expected to offer premium magazine subscriptions from the Texture app that Apple purchased earlier this year.

The numbers mentioned in a CNET story reveal why Apple can do very well with a new focus on services revenue. With more than 1.3 billion iPhone units active around the world, the owners of these handsets are all possible subscribers to whatever services Apple offers. At the end of its fiscal fourth quarter in September, Apple had 330 million subscribers shelling out cash, up 50% year-over-year. These paying subscribers generated revenue of $37.2 billion during Apple's 2018 fiscal year.

To build up more momentum in the category, there is speculation that Apple will launch a streaming video service early next year. This could be a competitor to several of the big video streamers out there now including Netflix, Hulu and Amazon Prime. But just placing the Apple name on such a service is no guarantee of success. After all, late next year the Disney+ video streaming service is expected to be launched. And the House of Mouse not only has a brand that rivals Apple, it also has a large inventory of films and cartoons that are appropriate for children and adults. However, if the rumors are right, Apple will launch its service in the beginning of 2019, allowing it to come to market before Disney.

Apple has reportedly spent $1 billion to have content developed by high profile Hollywood types including Steven Spielberg, the master of the last-second twist M. Night Shyamalan, and Oprah Winfrey. The company also signed up two top executives from Sony Pictures Television to help create new shows for the service.

Apple Music has been a huge success for the company. After all, despite Spotify's huge head start, Apple took over the top spot in U.S. subscribers from Spotify during this summer. That was just three years after Apple started offering its streaming music service. But streaming video is much different since each major player has its own original content that draws paying subscribers. Even if Apple does everything right in terms of creating and marketing a streaming video service, ultimately its success could boil down to original shows that it greenlights for production.

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19 Comments

1. cmdacos

Posts: 4084; Member since: Nov 01, 2016

Can't see the left side of the screen on the image. Will apple be adding a unibrow eclipse on all the videos so 6,7,8 users can experience the best Apple has to offer?

2. mackan84

Posts: 359; Member since: Feb 13, 2014

Still dont get why anyone would want to watch movies or tv shows on a 5-6.5” screen. Besides watching 16:9 movies on smartphones these days makes you miss hell of a lot more then that notch...

9. dnomadic

Posts: 398; Member since: Feb 20, 2015

I would assume that this for people that have or will buy into the Apple ecosystem: Apple TV/Macs/iPads they would primarily use those divides for viewing content. This will be an important December for Apple seeing the trending away from traditional cable content distributons.

3. lyndon420

Posts: 6715; Member since: Jul 11, 2012

Is that really how all videos are displayed on the iPhone X line? I just assume it's a bad render photo.

5. mackan84

Posts: 359; Member since: Feb 13, 2014

If you’re watching a 16:9-video you get sidebars with full video. If you blow it up like on the image you lose the area where the notch is, and a big portion on top and bottom.

15. midan

Posts: 2687; Member since: Oct 09, 2017

if you see notch while watching content it means you have bigger problem, it means you zoomed your movie etc over the screen, which well just looks very bad. I don't understand why people do that.

4. D34ever

Posts: 223; Member since: Jul 14, 2018

I expect this to be a big FAIL. Why? Simple...nothing Apple sells is affordable.

6. bungid

Posts: 25; Member since: Mar 16, 2015

Top company in the world. What can you give to society?

7. apple-rulz

Posts: 2007; Member since: Dec 27, 2016

It’s entirely possible Apple can pull it off. In just three years they’ve already become a major thorn in the side of Spotify, so becoming a force in the video streaming market isn’t too far fetched.

8. cncrim

Posts: 1586; Member since: Aug 15, 2011

competition is good bring it on.

10. dnomadic

Posts: 398; Member since: Feb 20, 2015

I rather have Google do it as the implementation will be more thoughtful and easy to use, but Apple WILL make the UI beautiful.

11. Leo_MC

Posts: 7190; Member since: Dec 02, 2011

Give them “panem et circenses”. No wonder some people are so stupid: they spend all day watching tv shows and sports events.

12. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Apple is getting ready for their next transition. They are about to become exactly what IBM became and also Sega. Go from making money on hardware and getting into selling software services. Because as Microsoft has always stated as fact. The money is in the software, not always the hardware.

13. koioz

Posts: 132; Member since: Nov 29, 2018

Lmao netflix copycat on iphone XR.? Lol

14. killer7D

Posts: 550; Member since: Sep 18, 2014

Nobody can compete with Netflix !

16. midan

Posts: 2687; Member since: Oct 09, 2017

Netflix is quite crap, just like all those. If Apple can use their movie database one day they will win lot of customers, before that it's propably quite difficult. But movie database for all those netflix etc is quite bad.

18. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Ginny how you think everything is crap because it doesn't have Apples name on it. That's why Netflix put blockbuster and almost every video store completely out of business was because according to you. Netflix is crap. Gosh I domt think there is anyone in the world worse off than you. Well other than Whatev. Both of you are complete wasted of skin and bones.

19. midan

Posts: 2687; Member since: Oct 09, 2017

What are you crying? if you watch little bit more movies all these video streaming services are bad. I just used three of them one month free. Movie catalog is very bad, new interesting stuff coming very rarely. That's why i have these like one month in a year and watch everything interesting it has to offer. I even said that without iTunes movie database Apple won't win the competition. If you want to watch series, i think netflix is quite good, but for movies not, just like so far i haven't found any good one. IF Apple can use their movie database or some part of it one day with their video service, i will use it right away, not interested if that's not happening. "That's why Netflix put blockbuster and almost every video store completely out of business was because according to you. Netflix is crap." i really doubt that Netflix did that, netflix is more for tv series than for Movies. You have lot better collection of new movies in video stores than in netflix. Smart tv:s and internet movie rental sites and apps took video stores etc out of business. All of these video stream services have same problem, very small selection of movies. If you want to watch good movies you still pretty much have to rent them somehow. https://www.productreview.com.au/p/netflix.html netflix rating 2,6 most thinks it's terrible. People there say exactly same thing than me, but of course you got butthurt over it because i said it.

17. gamehead unregistered

Surprised they don't have one

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