Why Apple has now changed its tune for rival Samsung2 min read . Updated: 09 Jan 2019, 06:11 AM IST
Apple's move to offer iTunes Movie and TV Show services on Samsung Smart TVs comes at a time its seeking new ways to increase revenue
New Delhi: Apple has said it will offer iTunes Movie and TV Show services, along with Airplay 2 technology, on Samsung’s smart TVs. The move comes at a time when Apple is seeking new ways to increase its revenue. Mint analyses how the services will work and how this will impact Apple.
What’s the rationale behind Apple’s move?
Recently, Apple chief executive Tim Cook told investors that the firm won’t be meeting its revenue targets in the quarter ended 31 December 2018. However, it announced record-breaking revenues from its App Store for the same quarter.
“Apple services set new all-time records in multiple categories, including the App Store, Apple Music, Cloud Services, Apple Pay and the App Store’s search ad business," it said.
If Apple has to raise its revenues from content services, it can do so only by reaching out to more users. Samsung may be the first in line to offer Apple’s content services on its products.
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How will the partnership work?
According to Samsung, its smart TVs will get the iTunes Movie and TV Shows app, allowing customers in 190 countries to stream content directly from the TV. They will also be able to rent and buy content. For existing iTunes customers, their content libraries will also be accessible on the TVs. Besides, adding Airplay 2 support will let customers stream content to their TVs from Apple products such as iPhones and iPads. The services will include photos, videos and podcasts. Airplay is a proprietary technology used by Apple in its products and functions the same way as Bluetooth, but is usually faster.
How will this benefit Indian customers?
These services were so far limited to Apple products and the company has a small market share in India. Indian consumers can now enjoy the Apple services on Samsung smart TVs.
What does this mean for Apple TV?
If Apple bring its content offerings to more TVs and other streaming products, it may lead to the end of its own streaming box, the Apple TV. While Apple has been selling Apple TVs for sometime, cheaper products such as the Amazon Fire TV Stick, Google Chromecast and Roku streaming boxes have hurt its market in this segment. After the tie-up with Samsung, Apple TV will be left with only one advantage, the App Store. That may not be enough to convince customers to buy the Apple TV any more.
How long will it be before we see these services on other TVs?
If Apple does bring iTunes to other TVs, it will likely take some time. Samsung’s smart TVs currently run on the company’s own Tizen operating system (OS), whereas smart TVs from Sony and LG run on Android TV and webOS, respectively. That means while Apple is building an iTunes Movie and TV Show app for the Tizen OS, it will also have to build separate apps for other platforms. That would take some time and a lot of discussions with the respective companies.