On November 1st Apple will be launching its new streaming service called Apple Tv +. They are entering a competitive market and to win over Netflix and Hulu users, Apple is using an aggressive pricing strategy. Their streaming service will be $5 a month while Netflix’s main plan is priced at $13 a month and Hulu starts its service at $5.99 a month.
Analysts expected that Apple would charge subscribers between $8 to $10 per month for the service considering they typically charge a premium for products and services. Tim Hanlon, CEO of Vertere Group said “you have to expect they’re going to do something, considering how hyper competitive the streaming video space is.”
Netflix has accumulated over 150 million subscribers since creating the video streaming service industry in 2007. Hulu entered the market in 2008 and has more than 28 million subscribers. Hulu partnered with Spotify, the music streaming company, to help build its customer base. Netflix and Hulu have been battling over subscribers for years with their new additions, prices, and original content.
They now have to make room for Apple TV+ which also includes original content. Apple has spent billions creating its original content such as “The Morning Show,” a comedy starring Jennifer Aniston, Reese Witherspoon and Steve Carell. They will launch nine tv shows and films with the anticipation to grow from there with more content. It will be available in 100 countries and will carry Apple’s original programming.
Apple is giving free TV access to anyone who buys an iPhone, iPad, iPod Touch or Mac in hopes of pushing their sales of the service and its products. Apple also expanded its gaming services on September 19th when they released Apple Arcade, a videogame subscription with 100 exclusive games for $5 a month.
According to the research firm IDC, iPhone sales are down 25% this year, pushing the company to generate revenue from other sources such as music, games, apps, and the new Apple TV+.