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Netflix Killer? Here’s What Analysts Say About Apple TV Plus

Date published: 2019-09-12
Originally published: Here. Excerpt below.


Helped by a low $5 price and a free subscription offer, Apple TV+ could attract as many as 10 million users within its first year, according to an analyst.
Dan Rayburn, the analyst for Frost & Sullivan who made the prediction, says the planned video-streaming service, which debuts Nov. 1, is likely to gain traction. Apple has a huge existing customer base that it can market the service to and deep pockets that allow it to take a long-term view in terms of profits.
I think its very, very smart of Apple, and theyre going to have a great service at $5 a month with some great content, says Rayburn.
The low price is a surprising move for Apple, which has traditionally charged the same or more for products than its rivals. But in the case of Apple TV+, Apple plans to charge less than competitors like Netflix, Hulu, HBO Now, and the forthcoming Disney+, which arrives on Nov. 12 for $6.99 monthly on its own or $12.99 monthly as part of a bundle that includes ESPN and Hulu.
Furthermore, in trying to attract subscribers, Apple is going on a marketing binge. Everyone is eligible for a one-month free subscription while people who buy a new Apple device get an entire year for free.
Three analysts who Fortune spoke to dont view Apple TV+ as a significant source of revenue for Apple, but rather another way for the tech giant to keep its users hooked on Apple products. For the time being, Apple can rely on and market other revenue streams, such as the iPhone, which generated $26 billion in revenue during the latest quarter, and its services business, which collected $11.5 billion.
They [Apple] will make up the money in other ways, says Rayburn. Apple owns it all:  They own the ecosystem. Netflix doesnt have that.
What Netflix does have on Apple is a significant head start in the original content space. Since debuting its first major original series, House of Cards, in 2013, Netflix has poured tens of billions of dollars into the production of original series and fil ...


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