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We are sure you love to Netflix N Chill, but did you know that one of our favorite tech companies - Apple - is also entering the streaming wars after Halloween?
Today's video is all about the streaming wars… we’ll find out if Apple is in for a treat…
or whether they’ve been tricked into thinking they could steal the crown in the streaming industry, away from Netflix …. Let’s take a closer look.
What if televisions were rarer because you didn't need them to watch your favorite tv shows?
What if traditional cable companies completely faded away into history?
Well Aluxers with digital media going strong day by day, we’re all in for some big announcements from the streaming industry.
Before we dig deeper, we need to figure out what the current digital streaming landscape looks like.
Being in the post-internet era, we all tend to consume a lot of online content through various streaming sites,
be it watching the news, entertainment or listening to music, we tend to use either one or the other streaming service and that's created a new phenomenon
- ‘the streaming wars’.
Now if you are wondering what do we exactly mean by the term “streaming wars”, we have got you covered.
In recent years many renowned companies have entered or are about to enter the digital streaming industry
and this increasing clutter has created a warlike situation since all these streaming companies are in a race to win the maximum number of subscribers.
Right now the leading business giants like Amazon have already invested in the streaming industry
and Netflix which is a dedicated streaming media company is the industry leader worldwide.
Netflix has 158 million subscribers around the world out of which 139 million are active paid subscribers,
and with its iconic original content, it is winning over many subscribers every day.
Although Netflix started as a video renting service provider,
it realized the importance of original content well before its present competitors and has managed to build a dedicated subscriber base over the years.
The first original Netflix show House of Cards was released way back in 2013
and since then the company has managed to stay atop with a wide range of original diversified content.
In the first four weeks of the latest season of the trending Netflix original “Stranger Things”, 64 million subscribers tuned in.
With such impressive credentials and an attractive monthly subscription fee of $13.99, it seems impossible to beat Netflix,
but Apple has taken this challenge and is aiming to have over 100 million users in the next 5 years with the launch of its own streaming subscription Apple TV plus.
So let's try to understand what is Apple’s strategy to win the streaming wars.
Apple is launching its own streaming service called Apple TV plus on 1st of November and unlike its apple products which are considered to be comparatively expensive,
the Apple Tv plus subscription is priced at only $4.99 monthly, which is way lower than its biggest rival Netflix.
Also being a tech company Apple has several advantages in the streaming wars,
for example, it has announced a promotional offer of one year free trial for Apple TV Plus if one purchases an Apple product like the iPhone or iPad.
With the majority of streaming services like Netflix providing only one month of a free trial period, one year free trial of Apple TV Plus surely looks appealing.
Original diversified content has helped Netflix to retain its leadership in the streaming industry and thanks to the deep pockets of Apple,
the company has already invested in creating original content for Apple TV plus.
Apple has made deals with world-famous leaders of the entertainment industry like Oprah, Steven Spielberg, and J.J. Abrams
to deliver its subscribers premium and exclusive streaming experience.
In its launch phase AppleTV plus is expected to stream ten shows with an estimate of ten episodes in each season,
featuring celebrities like Jennifer Aniston and Jason Mamoa in lead roles, available exclusively for its subscribers.
Apple had even invited Oprah to announce their multi-year partnership with her at the launch announcement of Apple TV plus.
With such an impressive lineup of content available at a competitive prices, Apple TV plus will surely win millions of subscribers worldwide in the upcoming years.
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Now that we know Apple’s game plan, let's try to understand what challenges Apple TV Plus may face in the launch phase.
Aluxers, Apple is known for its innovation and has ventured into a variety of businesses successfully in the past,
but the streaming industry possesses its own unique challenges.
Netflix has effectively monetized the binge model in the streaming industry
by launching all the episodes of a season for a series at once rather than making the subscribers wait for a new episode every week,
and it won't be easy to beat this tried and tested formula.
Unlike the Netflix catalog which showcases all the series and movies available in the Netflix library, apple TV Plus lacks a digital library.
As per the current launch details, subscribers will have only a hundred episodes across the entire streaming service that too in a nonbingeable format.
Whereas the giant competitor Netflix currently offers 47000 TV episodes and 4000 movies in its digital catalog.
Doesn't really sound like a tough fight, right?
Apart from Netflix apple TV Plus will also be competing with the other major streaming players like Hulu and Amazon Prime video.
These competitors are established players worldwide and provide many bundled services apart from content streaming,
making them more attractive for their subscribers.
Amazon, for example, provides streaming services through prime video along with the Prime delivery service to its subscribers, and that too at a monthly price of $12.99.
Whereas Disney owned Hulu provides a robust option of Live TV along with on-demand video for its 28 million-plus American subscribers.
Apple Tv plus will also be competing with the other giants across different geographies,
like in India Disney owned streaming service-” Hotstar” has 300 million monthly active users.
Although Apple is offering a one year free trial with the purchase of an apple product
the real challenge will be to convert the subscribers from free users to paid users after the trial period.
For example, currently, Apple sells 160 million phones annually worldwide,
who all will become instant free subscribers to Apple TV Plus in the launch phase,
now with the industry average conversion rate of 0.2% to 5% it will be difficult to retain and expand the subscriber base
after the free trial period since Apple never puts ads about such services within its iconic devices.
And even if Apple manages to get the best possible conversion rate in the industry of 5% from its 160 million free trial users,
that will result in only 8 million paid subscribers worldwide which is very far from its target of 100 million.
Time will tell whether Apple wins the streaming wars or Netflix continues to be the industry leader
but as quoted by Netflix CEO Reed Hastings the launch of Apple TV Plus would in fact accelerate the worldwide shift from linear TV to digital media
rather than creating a competition.
There are, currently, 6 major players in the worldwide streaming industry and ultimately the consumers will choose which streaming service they love the most,
but with new players like Apple entering the streaming industry, that choice is becoming increasingly tougher.
Now Aluxers the tricky thing is deciding which ones to subscribe to, or do we subscribe to them all?.
Now Aluxers, of course, we know we have a large international audience and would definitely want to hear what you think about the streaming wars
Or are you someone who would just subscribe to both and enjoy the add free TV in your living room?
Let us know in the comments
And, of course, for sticking with us until the end, here's your... Bonus!
Curious to know who is entering the streaming industry next?
Well, Disney it is…starting from November 12th this year, Disney will launch its own streaming service called “Disney Plus,”
the subscription will give access to all the Disney classics and also the blockbusters created by Marvel, Pixar, Star Wars, all falling under the Disney umbrella.
Disney plus will also feature original shows and movies exclusively for its subscribers.
With its family-friendly content at the core, we’re sure it will create its own fan base among families and help the company to up the game in the digital age.
Thank you for spending some time with us Aluxers!
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