Thursday November 15, 2018
Home Science & Technology Apple is soon...

Apple is soon coming up with a Video Streaming service like Netflix

Netflix launched its groundbreaking video streaming service in 2007

0
//
Apple
Apple losing out AI race to Google, Amazon: Report
Republish
Reprint
  • Netflix beat Apple to the punch with its groundbreaking video streaming service
  • Follow-on rivals of Netflix- and Hulu also boast of popular video streaming services
  • Apple has periodically upgraded its Apple TV, which isn’t a television, just a video streaming player that connects to TVs

San Francisco, USA, September 9, 2017: Television is one of the few screens that has Apple hasn’t conquered, but that may soon change. The world’s richest company appears ready to aim for its own Emmy-worthy programming along the lines of HBO’s Game of Thrones and Netflix’s Stranger Things.

Apple lured longtime TV executives Jaime Erlicht and Zack Van Amburg away from Sony Corp. in June and has given them $1 billion to spend on original shows during the next year, according to a Wall Street Journal report quoting unnamed people.

The programming would be available only on a subscription channel, most likely bundled with the company’s existing Apple Music streaming service. Apple declined to comment.

While $1 billion is a lot of money, it’s a drop in the bucket for Apple and its $262 billion cash hoard. But it’s still enough to vault Apple into the top tier of tech-industry outsiders producing their own slates of television shows.

iTunes came first

Hollywood has long shuddered at the thought of Apple training its sights on TV the way it once did on the music business.

Almost 15 years ago, Apple’s then-CEO Steve Jobs convinced record labels to let the company sell digital music on its iTunes store for 99 cents a single, a deal the music industry was happy to take in the face of growing music piracy enabled by Napster. Over time, though, Apple’s dominance in digital music chafed music executives, who saw the company siphoning off a chunk of their profits.

Movies and television have proven much harder for Apple to crack. The company’s interest in transforming television has been an open secret for years, but Hollywood has so far spurned Apple’s efforts to make itself an indispensable digital middle man for video.

In a way, Netflix beat Apple to the punch with its groundbreaking video streaming service. Launched in 2007, that service pioneered “binge watching” of entire TV seasons on any device with an internet connection. That gave new life to existing shows such as Breaking Bad, whose creator credits Netflix with its survival, and spawned the creation of other series tailor-made for bingeing.

Netflix also helped unleash a crescendo of creativity in Hollywood. Follow-on rivals Amazon and Hulu also boast popular video streaming services, and mainstream broadcasters such as CBS and Walt Disney Co. — the owner of ABC and ESPN, among other networks — are also jumping in.

Pressure to act

All of that has increased the pressure on Apple to step up its game in TV — not least because the increasing popularity of streaming is hurting its business of renting and selling video from iTunes.

Apple “doesn’t want to be left behind,” said Debby Ruth, senior vice president of consumer research firm Magid. “This is a way for them to put a stake in the ground.”

This year, the company released its first two original series, Planet of the Apps and Carpool Karaoke, on its Apple Music service, which has 27 million subscribers. But neither show has generated much buzz or critical acclaim.

The recent hiring of Erlicht and Van Amburg signaled Apple’s intent to make a bigger splash. The executives have helped orchestrate several TV hits, including AMC’s Breaking Bad, and more recently branched out into video streaming with The Crown, which landed on Netflix last year and is up for 13 Emmy nominations in this Sunday’s ceremony.

Apple also has a not-so-secret weapon: hundreds of millions of iPhones and iPads already in the hands of faithful fans. It could easily transform those into a marketing platform to lure users to its TV service.

But the company has a steep hill to climb.

Bigger players

Netflix has more than 100 million worldwide subscribers and a video library that will add 1,000 hours of original programming this year alone. And HBO has become the Emmys’ pacesetter since branching into original programming 20 years ago.

Both companies vastly outspend Apple’s reported $1 billion production budget. HBO spends about $2 billion annually on its programming, which garnered 111 nominations in this year’s Emmy Awards, more than any other network. Netflix, which boasts the second most Emmy nominations with 91, expects to spend $6 billion on programming this year.

Apple is still experimenting in TV, said Gene Munster, a longtime Apple watcher and managing partner with the research and venture capital firm Loup Ventures.

“In five years, I bet Apple will either be investing $10 billion a year in content or zero,” said Munster. “It’s going to be one or the other.”

Jobs’ legacy

Jobs discussed his ambitions to shake up TV with his biographer, Walter Isaacson, shortly before his death in 2011.

 “He very much wanted to do for television sets what he had done for computers, music players, and phones: Make them simple and elegant,” Isaacson wrote.

 

But no Apple television ever materialized. Instead, Apple has periodically upgraded its Apple TV, which isn’t a television, just a video streaming player that connects to TVs. That device has been losing market share to other streaming players made by Roku, Amazon, and Google, according to the research firm Park Associates.

Building a successful programming lineup could give Apple more leverage to license shows from other Hollywood production houses. It might even embolden the company to finally release its own streaming TV set.

Apple will presumably also want to emulate Netflix’s ability to exploit usage data to determine what it thinks audiences want to watch. Netflix’s data analysis has helped it attract 25.5 million more subscribers in the U.S. alone since the February 2013 debut of its first original series, House of Cards.

But if Apple decides it needs a little more help in video streaming, Munster thinks there’s a 1-in-3 chance that it will buy Netflix to instantly gain the cachet and expertise in TV programming that it craves. (VOA)

Click here for reuse options!
Copyright 2017 NewsGram

Next Story

Apple Appoints Ashish Chowdhary as its India Operation Head

Apple is currently assembling iPhone 6S in India with its partner Wistron

0
Apple, Iphone XR, Apple Watch
Apple appoints Nokia veteran Ashish Chowdhary to lead India operations. Flickr Commons

In a fillip to Apple CEO Tim Cook’s big future plans for the Indian market, Apple has appointed Ashish Chowdhary, Chief Customer Operations Officer at Nokia Networks, as its India operation head, reliable industry sources told IANS on Tuesday.

Chowdhary will join as Apple India head from January next year, the sources confirmed.

The decision to hire Chowdhary is a testament to the fact that Apple is aiming for a really long-term growth in a price-sensitive market where Apple is an aspirational brand and usually bought by those who have high spending power or can go for older generation phones for affordability.

In line with the development, Nokia also announced on Tuesday changes in the composition of its group leadership team, declaring that Chowdhary will “leave Nokia at the end of 2018 after 15 successful years.”

“Chowdhary will continue to lead Customer Operations and remain a member of the Nokia Group Leadership Team until the end of 2018. He will then leave Nokia to take a leadership position in another company,” said Nokia.

According to industry sources, Apple has roped in Chowdhary — who has a sound global as well as local knowledge of the industry — to get a bigger slice of a market that has nearly 450 million users and is one of the fastest growing, after China and the US.

Apple India is currently under Michel Coulomb who took over from Sanjay Kaul in December last year.

Chowdhary has 25 years of international experience in the enterprise and telecom sectors. As Chief Business Officer, he was responsible for Nokia Networks’ sales and operations globally.

He has held various leadership positions, including Head of Asia Middle East and Africa and prior to that, Head of Global Services Business Unit.

Both these units contributed nearly half of the company’s revenues and were key to the successful transformation of Nokia.

Apple
An Apple store in Woodbridge, Virginia. (VOA)

The appointment comes at a time when the iPhone maker is seeking tax relief and other incentives from the government to begin assembling more handsets in the country and its proposal to set up a manufacturing unit is also being evaluated.

Breaking his silence on Apple’s India presence, CEO Tim Cook admitted on November 1 that his business was flat in the country in the fourth quarter amid weak currency trends.

Cook, however, stressed he is still a big believer in the Indian middle class.

The Apple CEO also said that he has had really great productive discussions with the Indian government.

“We’ve had really great productive discussions with the Indian government, and I fully expect that at some point, they will agree to allow us to bring our stores into the country,” Cook responded to a question during the analysts’ call.

Apple is currently assembling iPhone 6S in India with its partner Wistron.

Also Read- Google Probing ‘Malicious’ Attack on its Internet Traffic

“I am a big believer in India. I am very bullish on the country and the people and our ability to do well there,” Cook said.

Cook is also aware of the tremendous growth opportunity in India.

“There’s a huge number of people that will move into the middle class. The government has really focused on reform in a major way and made some very bold moves.

“I applaud them for doing that and I can’t wait for the future there,” Cook told the analysts over call. (IANS)