With iPhone sales waning - even in countries that used to reliably support demand, like China - Apple's
Developed with a hefty $1 billion budget, Apple Originals is a platform that will display only Apple-produced content on its unique Apple TV product. Unlike Netflix
These new shows will thus be available only to those who have already purchased or are planning to purchase the Apple TV - they can't be viewed via a normal browser or any other non-Apple device. This poses a significant obstacle to customer acquisition, as the shows will primarily reach Apple's existing consumer base. While this is an advantage in terms of solidifying branding efforts and consolidating consumer loyalty, the only way Apple can capture new segments of the market is to ensure its productions are very high quality, competing with the likes of Netflix or HBO
Some of the featured titles include "My Glory Was I Had Such Friends," starring Jennifer Garner, as well as "For All Mankind," "Little America," and international shows like "Pachinko," which is based on a famous novel by Min Jin Lee.
There is also speculation that Apple may bring some of its content to Roku and smart TVs, but in the future.
"They built an organization to make beautiful gadgets and compete with Samsung and other gray-box manufacturers," said Mike Levin of Consumer Intelligence Research Partners, a technology analysis firm. "Now, they have to really think about the services and software that have been so uneven and compete with a lot of very different competitors."
In addition to entertainment, Apple plans to create a centralized News app that has access to more than 200 premium news sources like People, Glamour and The Wall Street Journal. The company is going to charge $9.99 for the service in the hopes that existing user engagement with iPhones, iPads etc. increases.
Apple is now trying to also build up its music streaming service, which is still significantly behind Spotify, the market leader that has 96 million subscribers. If Apple wants to solidify its position as top dog, it may need to stop replying on its existing products to distribute its services and instead focus on improving visibility of the services themselves.