Apple TV Plus will launch on November 1, at a price that undercuts competitors Netflix, Amazon Prime and Disney Plus. The service, announced at Apple’s annual product launch event, will be free for a year for customers who buy a Mac, iPhone or Apple TV. The company also unveiled three versions of its iPhone 11, as well as a new iPad and a new Apple Watch. (The Logic)
Talking point: Early reports said Apple was considering a US$9.99 monthly fee for the service, as the company aims to reach US$50 billion in service sales by 2020 amid declining revenues in its smartphone business. The lower price point could mean Apple is betting to win the increasingly competitive streaming market by capturing membership numbers first and growing its revenue later (in August, The Financial Times reported that the company was spending some US$6 billion on star-studded original content). Apple’s competitors still have an edge in that they feature content from a range of producers, whereas Apple TV Plus is exclusively original content. Still, Netflix’s stock dropped 3.11 per cent and Disney’s was down 2.83 per cent on the news in late afternoon trading. Apple’s stock was up 0.20 per cent.