Apple reportedly wants its TV app to be more like Amazon Channels

For the first time, Apple plans to begin selling subscriptions to certain video services directly via its TV app, rather than asking users to subscribe to them through apps individually downloaded from the App Store, according to people familiar with the matter.

This would simplify the process and bolster Apple’s TV app on Apple TV, iPhones and iPads, making it a central place for people to find, watch, and buy content. It would also be another way for Apple to keep boosting its services business, which it expects to generate $50 billion a year in revenue by 2021.

Right now, the TV app aggregates content from other providers, allowing people to locate shows from a wide array of apps and channels like ABC, NBA League Pass and HBO, rather than having to hop between different apps. But then Apple sends customers outside its app to buy access to those channels or watch shows. With the pending change, subscription purchasing would move to the TV app. Apple could eventually move the streaming to its own app, instead of sending users to third parties.

Cupertino, California-based Apple plans to roll out this feature in the next year, the people said, asking not to be identified discussing plans that aren’t public. With growth in iPhone sales slowing, Apple is now looking to services such as Apple Music and iCloud storage and content subscriptions to boost its financial results. Sales from services climbed 31 percent in the most recent quarter, reaching a record $9.2 billion.

Apple declined to comment on the project.

Apple is positioning the TV app much like Amazon does with its Channels program, which allows customers to add subscriptions for HBO, Starz and Showtime to Amazon Prime Video. Customers who pay an annual subscription fee for Prime also get access to video and music streaming, and they can pay extra for a more robust content library. HBO, Starz and others have credited Amazon with helping them boost new online services by marketing them to its base of more than 100 million Prime customers.

Apple is also one of the biggest sellers of movies and TV shows thanks to iTunes, but it has largely missed out on the wave of on-demand services now replacing the online sale of individual titles. Netflix and YouTube, owned by rival Alphabet Inc., operate the two largest online video services in the world outside of China.

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Apple on Tuesday officially launched its new streaming video service, dubbed Apple TV+, and updated its TV app, which will be available on Roku and Amazon Fire TV devices.

TV+ is launching in the fall in more than 100 countries. New Apple originals will launch each month and will be available ad-free. The company didn’t mention pricing for the service.

Apple brought out Oprah Winfrey, Steven Spielberg, Big Bird, Jennifer Aniston and others to hype up its upcoming slate of original programming – but the company didn’t show any individual trailers for any of the series, only a sizzle reel with short clips from each.

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Apple TV+ will be an important part of Apple’s growing services revenues going forward, but one analyst says the service is going to need a lot of subscribers to make much of an impact.

Cowen analyst Krish Sankar said the service, which is launching later this year, will need tens of millions of subscribers in its first few years. The analyst firm expects TV+ will reach 12 million subscribers in 2020 and 21 million in 2021, which would contribute between $0.11 and $0.32, respectively, to Apple’s earnings.

Apple will face lots of competition in its effort to build up a subscriber base for its video streaming service. Incumbent SVODs like Netflix, Amazon Prime Video and Hulu currently dominate the market and incoming services like Disney+ are expected to attract lots of new subscribers.

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The platform will launch with original series such as 'The Morning Show' starring Reese Witherspoon and Jennifer Aniston.
Apple is revealing more details about its long-gestating streaming service.

The tech giant on Tuesday announced that its subscription service TV+ will launch Nov. 1, offering originals like the Jennifer Aniston and Reese Witherspoon starrer The Morning Show for $5 per month for a family subscription. That's significantly cheaper than offerings from Netflix ($13 per month for the most popular plan) and Disney+ ($7 per month when it launches Nov. 12). In a move sure to boost signups for the service, Apple is offering anyone who buys an Apple device a year of TV+ for free.

Apple CEO Tim Cook made the announcement at the company's annual fall product event, acknowledging that people have been wondering about the details of the forthcoming service. "Our mission for TV+ is to bring the best original stories from most creative minds in TV and film," he said, describing the projects as "stories that help you find inspiration, grounded in emotion, stories to believe in, with purpose."

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