At the March 25 (next Monday), Apple will hold an event to announce its service of streaming from videos and maybe your news service. This is nothing new, although everything so far has been reported by "people involved in the company's plans who would rather stay anonymous for obvious reasons."
What no one expected was for a competitor's CEO to be, in the simplest language possible, to “poke Apple's eye” and basically confirm Ma's plans. Reed Hastingschefo Netflix, did.
Rather, a brief explanation. We can divide Apple's service into two strands: 1. production of original and exclusive content, which will be offered upon subscription; and 2. incorporation of other services of streaming within the Apple TV app, so users can subscribe to such services through the app itself and watch the entire content from there, with Apple controlling the entire experience. This, of course, according to the news and rumors that have already been reported.
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Such rumors already assumed that Netflix would not be part of Ma's venture, either. And now, the company CEO himself has confirmed that Netflix is out of the party.
According to the Recode, the CEO confirmed that the company will not sell subscriptions to its video service through hub that Apple plans to launch something, moreover, that Amazon already does to sell video subscription services like HBO and Showtime, and that Facebook also intends to do.
Here's the phrase Hastings said at a news conference in Los Angeles:
Apple is a great company. We want people to watch our programs on our services. We chose not to integrate with their service.
We cannot say that Netflix's negative is a surprise; on the other hand, confirmation that Apple's service will also function as a hub coming from a competitor (who could be a partner but not be) somewhat unexpected.
Netflix faces stiff competition not just from Apple, but from new companies entering the market like Disney and WarnerMedia (from AT&T). About this, Hastings made a traditional statement saying that “the optimal competition for Netflix, consumers and content creators” is 100% true. On the other hand, this same competition ends up making the purchase of content more expensive and, as everything is always passed on to the customer, the prices of these subscriptions rise (Netflix is the proof of this).
Taking the US market as an example, hardly a large number of people subscribe to Netflix, Amazon Prime, Hulu, WarnerMedia, Disney Plus, ESPN Plus, HBO, Showtime, Starz, CBS All Access, and Apple's service. So, as much as the statement of "when more competition, the better" is true, now the fight really is!