New Delhi: With services accounting for 20% of the overall revenue, Apple has forayed deeper into streaming and gaming services with the announcement of subscription based gaming service Arcade and video streaming service Apple TV+. Both cost $4.99 a month. Apple already has a music streaming service that starts at ₹99 a month and is available in India.
Video streaming market is growing phenomenally and clearly, Apple is hoping to cash on it with its own streaming service.
According to a July report by PwC, India’s video streaming industry is expected to grow at a CAGR of 21.82% and reach Rs.11,977 crore by 2023. The global video streaming market is expected to reach $124.57 billion by 2025 and expand at a CAGR of 19.6%, according to an April study by Reportbuyer.
Apple has already roped in Hollywood biggies like Jennifer Aniston, Steve Caroll, Reese Witherspoon and Oprah Winfrey for exclusive shows, series and movies.
Apple TV+ will launch in November in over 100 countries, including US (there is no specific update on when its launching in India), with Jason Momoa starting movie "See" about a futuristic world where humans can't see, Jennifer Aniston and Steve Caroll starting series "The Morning Show" on cutthroat news business, a coming of age drama on poet Emily Dickinson. M Night Shyamlan's psychological thriller "Servant" will be added later to the platform.
The fact that Apple TV+ will be tied to Apple's rich motley of devices and with the announcement that the service will be available free for one year to up to 6 users simultaneously on all new iPhones, iPads, iPod Touch, Apple TV and Mac PC, might also work in Apple's favour and bring millions on board in a few months.
However, to sustain and grow its user base, Apple will have to invest heavily in the content and that is where it faces the real test.
Online video streaming services market is largely dominated by Netflix which boasts 151 million paid subscribers in Q2 2019, however with Disney video streaming service launching at $6.99 a month on November 12, Apple TV+ will have to contend with a competitor that owns Marvel Universe and an enormous library of popular Disney movies. According to reports Disney+ will launch with 400-500 movies. Netflix has a lot more content to offer and according to Unogs.com, its India library includes around 3,700 movies and 1,800 series.
Netflix's India services start at ₹199.
Apple also faces strong competition from Amazon's Prime Video service, which though bundled with prime subscription, has over 75 million users and vast library of regional language and Original content.
After the announcement of Apple TV+, Netflix shares reportedly dropped 3% and Disney's stock prices fell over 2%. Apple with its deep pockets has the resources to produce more original content and take on rivals. Despite being a late entrant into the segment, Apple TV+ can be a major video streaming platform in the coming days.