Apparently, everyone wants to give their opinion about the future service of streaming of videos from Apple. We have already talked a lot about it, which has everything to be presented to the world on March 25th. For now the analyst Tim O’Shea, from Jefferies, also brought its dose of information.
As the Business Insider, the analyst believes that Apple will charge $ 15 monthly for the service. For him there are two, the great challenges of the company for the new service to reach the desired success: original content (something that Netflix stands out) and content from major studios and networks. In O’Shea’s opinion, the Apple is not well positioned in any of these aspects.
That’s because Apple invests a fraction of what Netflix spends on original content, so the competition there already starts unevenly – while Apple set aside $ 1 billion for the venture, Netflix plans to spend $ 13 billion in 2018!
In the second question, Apple’s 30% bite in third-party service subscriptions (which should be made available by the Apple TV app) do not help in the task of attracting these partners.
In one thing, however, Apple has an advantage: the company’s ready ecosystem and huge customer base puts it at an interesting level, making it much easier to attract consumers to its service – this is Apple Music with over 50 million subscribers that proves the point.
The problem is that, in O’Shea’s view, even if “Apple Video” has something like 250 million subscribers in 2023 (just for reference, Netflix today has 139 million subscribers), it would still be responsible for only about 5% of the company’s revenue that year – and it wouldn’t make up for the drop in smartphone sales that much (the main reason the company is betting so much on new services).
Estimates and forecasts aside, we’ll see how Apple will do in this new venture.

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via 9to5Mac