Daily Management Review

Apple Launches Video Streaming Challenging Netflix And Amazon


Apple Launches Video Streaming Challenging Netflix And Amazon
Apple Inc has launched a new television and movie streaming service which can be accessed by owners of its more than 1.4 billion gadgets globally for streaming and viewing of television shows and films. The content would comprise of both original shows by Apple as well as those from other sources. Experts see this as the first baby step taken by the iPhone maker to rivals the dominant players in the video streaming industry such as Netflix and Amazon.
This launch took place at Apple’s Cupertino, California, headquarters and the program was completely focused on highlighting the services being offered by the company instead of its hardware. This is also seen as the strategy of the company to beat slowing sale of its iPhones. 
Updates to its payment system were also introduced by Apple along with the launch of a games arcade and addition to magazines to its news app.
The drop in sale of hardware money-makers has forced Apple to seek this path of revenue generation through venturing into original entertainment industry. According to experts and analysts, the focus of Apple currently is to focus on increasing revenues from sale of subscriptions for its services such as video, music and hardware insurance even as the company has not been able to come up with any scintillating new gadget or hardware in recent times.
Apple executives also focused on issues of privacy protections for consumers throughout their presentation as more people shop and consume content over a wide range of Apple phones, iPads or other hardware. The company also stressed that the content of the company would be appealing for the younger audience which is also being seen as a beginning of  a rivalry with Walt Disney Co.
Apple CEO Tim Cook said that public transit systems in Portland, Oregon, Chicago and New York City would soon allow the usage of its digital wallet Apple Pay. He announced that by the end of the current year, more than 40 countries will have the services of Apple Pay.
The field of video streaming and new age media is a crowded one with the likes of Amazon.com’s Prime Video and Netflix Inc being he early birds and he dominant players. These companies have in recent years investment heavily on to get viewer attention and create award-winning series and films.
There has also been a wave of consolidation in the traditional media because of the big tech war for viewers. For example, the acquisition of 21st Century Fox by Walt Disney Co and the purchase of Time Warner Inc by AT&T Inc are steps by the companies to move into the digital media scenario and launch new streaming video services very soon.
There was a 24 per cent growth in revenues for Apple for the year 2018 from its “services” segment - which includes the App Store, iCloud and content businesses like Apple Music. But that was just about 11 per cent of the total revenues of the company for the year which came at $265.6 billion. Investors however have faith in the growth of the services segment of the company in the near future.