Yup.. He made a mistake counting. I think he took a third of the subscribers instead of the revenue.
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Streaming TV Service Revenue Will Be a 'Drop in the Bucket' for Apple, Even If It Rivals Netflix
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Yup.. He made a mistake counting. I think he took a third of the subscribers instead of the revenue.
Yeah it will probably take years to get over here. Although the news/magazine subscription might be available on launch.
[doublepost=1550572747][/doublepost]With the proliferation of online streaming services Apple is coming to the table rather late. The number of these services is not sustainable and Apple has yet to even have one subscriber. I don't hold out much hope of their being successful in this venture when you have the likes of Netflix, Youtube, and Amazon Prime with their already established subscribers to compete against.
Analyst Tim O'Shea recently published a new research report looking at the impact of Apple's upcoming streaming TV service on the company's overall financial earnings (via Business Insider). According to O'Shea, even if Apple priced the service at $15/month (and took a 30 percent cut, while the rest went to video production partners), the resulting revenue would just be "a drop in the bucket."
O'Shea predicted that if Apple could get to 250 million subscribers by 2023, it would earn the company $13.5 billion in revenue and account for about 5 percent of the company's revenue that year. Not only that, but 250 million subscribers in four years is a generous prediction, given it took Netflix 12 years to reach its 139 million subscribers as of January 2019.
To be clear, O'Shea isn't predicting that Apple will price its streaming TV service at this level, but the analyst is simply providing a "what if" scenario for the launch of the service. CNBC previously reported that Apple will offer its original TV shows for free to Apple device owners, and new reports have suggested that users will be able to add more premium channels onto the service at a cost.
As part of these recent rumors, it's also been suggested all users will have to pay a monthly subscription to gain access to Apple's original TV shows. In regards to these rumors, a price has not yet been put forward. More clarity should be given to Apple's streaming service on March 25, when the company is expected to host a major event debuting the service and outlining its big features.
Article Link: Streaming TV Service Revenue Will Be a 'Drop in the Bucket' for Apple, Even If It Rivals Netflix
[doublepost=1550572783][/doublepost]
Analyst Tim O'Shea recently published a new research report looking at the impact of Apple's upcoming streaming TV service on the company's overall financial earnings (via Business Insider). According to O'Shea, even if Apple priced the service at $15/month (and took a 30 percent cut, while the rest went to video production partners), the resulting revenue would just be "a drop in the bucket."
O'Shea predicted that if Apple could get to 250 million subscribers by 2023, it would earn the company $13.5 billion in revenue and account for about 5 percent of the company's revenue that year. Not only that, but 250 million subscribers in four years is a generous prediction, given it took Netflix 12 years to reach its 139 million subscribers as of January 2019.
To be clear, O'Shea isn't predicting that Apple will price its streaming TV service at this level, but the analyst is simply providing a "what if" scenario for the launch of the service. CNBC previously reported that Apple will offer its original TV shows for free to Apple device owners, and new reports have suggested that users will be able to add more premium channels onto the service at a cost.
As part of these recent rumors, it's also been suggested all users will have to pay a monthly subscription to gain access to Apple's original TV shows. In regards to these rumors, a price has not yet been put forward. More clarity should be given to Apple's streaming service on March 25, when the company is expected to host a major event debuting the service and outlining its big features.
Article Link: Streaming TV Service Revenue Will Be a 'Drop in the Bucket' for Apple, Even If It Rivals Netflix
no
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lol, buying 1 Apple TV and being awarded with free high quality movies and TV shows for life. Best deal ever, sign me up
That is a fundamental misunderstanding between how Netflix works and how Apple works.
When you are watching Netflix, you are effectively renting a service that rents other content. Netflix signs deals with other content creators/distributors that usually have a time limit before they have to renegotiate again. Apple on the other hand is selling you the rights to the digital copy. That is yours to keep as long as the service is available. If the service deceased, there is a chance you would lose the content.
Apple's economies of scale and captive hardware base are what content providers want. Since Apple would eventually be the biggest consumer of the content, you can believe they'll change the economics of content provision, the same as they did with music and books: i.e. content acquisition costs will be driven down. Apple's goal is to essentially destroy traditional content distribution like cable and OTA. There are what, a billion iPhones in circulation? How many Macs? How many AppleTVs...Anddddd now that smart TVs are integrating AppleTV, they'll have millions of those access points as well. Please believe, those data centers are not there only to service iCloud...Apple's been waiting for this moment.
Currently AT&T and Verizon are both offering 5G with no caps for home usage.
If they don't bring that to my area and Starlink (SpaceX's internet plan) doesn't pan out, I might just decide to do this for my local area:
https://startyourownisp.com/