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Apple's Strategic Shift Into a Services Company Starts on Monday

Apple's Strategic Shift Into a Services Company Starts on Monday

Enterprise & IT Mar 23,2019 0

Apple's Tim Cook will take the stage at the Steve Jobs Theater in Silicon Valley on Monday to announce a new new era for the world’s largest technology company.

The chief executive officer is expected to unveil streaming video and news subscriptions, key parts of Apple’s push to transform itself into a leading digital services provider. The company may even discuss a monthly video games subscription.

Apple is working on a premium games subscription for its App Store and discussing it with potential partners, according to reports. This service won’t take on new cloud-based streaming offerings like Google Stadia. Instead, it will focus on iPhones and iPads and bundle together paid games from different developers that consumers can access for a monthly fee.

Apple’s three big hardware markets -- smartphones, personal computers and tablets -- are stagnating. To keep growing, the company has been trying to sell its existing device owners services such as Apple Music subscriptions, iCloud storage and AppleCare warranties.

On Monday, Apple will add video and news subscriptions, and could unveil a similar offering for credit cards. The company may also discuss combining all these digital services into a single bundle, similar to Amazon’s popular Prime program. Apple already has discussed the possibility of discounts for users who subscribe to more than one service.

The Apple video serviceis expected to focus on original content, including TV shows and movies from producers such as Damien Chazelle, M. Night Shyamalan, and Oprah.

It will also include documentaries, such as "Elephant Queen," and animations, like “Wolfwalkers” by Oscar-nominated studio Cartoon Saloon, along with a re-imagining of the “Amazing Stories” from Steven Spielberg, and a drama starring Jennifer Aniston and Reese Witherspoon.

A major component of the service will be a feature for tapping into bundles of content from providers like HBO, Starz, and Showtime -- similar to Amazon’s Channels offering.

Apple’s video service faces stiff competition from well-established players. Netflix, Amazon, Walt Disney Co., Hulu, and AT&T Inc. are investing at least $20 billion combined each year on content.

Still, there’s a base of at least 1.4 billion active Apple devices, giving the company an advantage over rivals such as Netflix. The Apple video service will be tied to a TV app that is already pre-installed on Apple devices.

The Apple News service will combine stories from newspapers, websites, and magazines into a new tab in the Apple News app on iPhones, iPads, and Macs. Apple plans to charge about $10 a month. The service will come as part of an upcoming iOS 12.2 software update, which will also include a redesigned icon and interface for the Apple News app.

The New York Times and The Washington Post are not part of the service, but The Wall Street Journal and Vox will participate.

Apple and Goldman Sachs Group are working on a joint credit card tied to the iPhone and Apple Pay app. Apple’s iOS 12.2 update will include a new Wallet app that lays the groundwork for the Goldman credit card. The card will support a new virtual rewards and tracking system to encourage timely payments.

Tags: AppleApple TV+Apple News+Apple Card
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