Following Apple TV+ announcement on Tuesday, Netflix stock fell 2 per cent ahead of looming competition from the iPhone maker. The monthly subscription of Apple TV+ will be available at $4.99 starting November 1st. Around the same time, Indians can purchase Apple TV+ subscription at the monthly price of Rs 99. If that wasn't enough, Walt Disney is also launching a full-blown price war against Netflix the same month. A subscription to Disney's video streaming service will cost $7 per month.
Coincidentally, the combined cost of Apple TV+ and Disney subscription will still be a dollar less than Netflix's main plan, which costs $13 per month. However, we are seeking more clarity on Apple's plans for a video streaming service with Apple TV+. Apple on Tuesday announced three new iPhones at their annual hardware event in Cupertino, California. But as expected, one of the major highlights of the event was the Apple TV+ announcements.
Although Apple's aggressive pricing was unusual, it wasn't completely shocking or unexpected ad declining iPhone sales are clearly resulting in a much-needed reform to Apple's business strategy. As per IDC data, iPhone shipments are down 25 per cent so far in 2019. Such a drastic decline may have put pressure on Apple to generate revenue from other means. For example, services such as music streaming, product repairs, revenue sharing, among others. Apple TV+ and its aggressive pricing appear to be a part of the same strategy. Most analysts expected Apple to charge $8 to $10 per month for the Apple TV+ service.
“You have to expect they’re going to do something, considering how hyper competitive the streaming video space is,” said Tim Hanlon, CEO of Vertere Group.
Other than pricing and availability, Apple CEO Tim Cook did not have much new to say about the Apple TV+ service during the event. However, Apple showed a trailer for the upcoming Apple original “See,” a show starring Jason Momoa. It remains to be seen whether or not Apple has any other card to play apart from aggressive pricing.