- Apple to spend $2 billion on original content
- New TV service is rumoured to launch in April
- Apple’s Q1 2019 revenue down 5% from last year
Apple is reported to be in the final stages of preparing to launch its video on-demand streaming service.
The new TV service is expected to launch globally in April and is considered an ambitious move to rival the likes of Netflix and Amazon.
It is expected to be available in more than 100 countries through the Apple App Store and, according to Reuters, Apple plans to resell TV channels subscriptions similar to Amazon, which through its Prime Video service resells the likes of satellite and cable network Starz.
Lionsgate Starz, CBS Showtime and Viacom are all expected to offer content on the Apple platform alongside Apple’s originals, despite the precise plans remaining confidential even to investors.
Apple is also thought to be in discussions with HBO to become part of the service, however it remains unclear if the partnership would make it in time for the launch.
With Apple’s iPhone sales declining, investors have started to fixate on revenue from paid subscriptions as a replacement, according to reports.
Earlier this month Apple announced its fiscal first quarter results for 2019 with a 5% decline in revenue attributed to the changing habits of customers.
Apple chief executive Tim Cook pointed to the organisational move into becoming a content entertainment service within the changing broadcasting landscape.
He said: “We see huge changes in customer behaviour taking place now and we think it will accelerate as the year goes by, to the breakdown of the cable bundle talked about for years.”
The television services launch comes as Apple builds out its services segment, which brought in $37.1 billion in 2018.
Advanced Television reported there is no information on payment for Apple’s TV plans, with some reports suggesting Apple’s content will be delivered via a subscription service similar to Netflix, while other reports pointed to some of its original content being made available for free to device owners.
Apple has also planned to create a subscription service for news dubbed a Netflix-style offering of news content, according to The Wall Street Journal.