Apple share price up 3% before preparing streaming service
The tech company's stock rises as it prepares to launch a subscription video service.
Apple share price rose 3% after news that the company is starting a streaming service similar to Netflix. The tech company will formally announce details about the online platform on March 25.
Details about Apple’s streaming service
Apple is trying to capture a part of a growing streaming service audience. Similar to other corporations that will provide online subscription content like Disney, Apple will be offering a library of original TV and movie content. The tech giant paid $1 billion for the programs and they will be able to be streamed across all Apple products, like Apple TV’s, iPads, and iPhones.
There are also reports that the platform will show content to subscribers of premium channels like HBO or Showtime. That aspect of the subscription service sounds similar to Amazon’s Prime Video. However, Apple will differ from other subscription services by offering less content, but higher profile offerings from stars like Oprah Winfrey and Steven Spielberg.
Is there room for Apple in the streaming service space?
While Apple’s streaming service is eagerly awaited by investors, it remains to be seen if viewers will be excited, too. Many customers are already tuned in to Netflix, Hulu, and many other online platforms. Kevin Westcott, Deloitte’s vice chair of U.S. telecom, media, and entertainment, says Apple may have trouble standing out in a crowded market.
‘There’s now more than 300 streaming services to choose from – up from 200-plus a year ago – and consumers may be feeling overwhelmed,’ said Westcott.
‘Well over half (of consumers) say they are frustrated when shows they like disappear or are no longer on a streaming service and that they have to have multiple subscriptions to get what they want. So there is a little bit of subscription fatigue,’ said Westcott.
Investors will see how loyal Apple customers are when chief executive officer (CEO), Tim Cook, presents the company’s subscription video service next week.
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