- A new service unlike anything that's been done before.
- Apple is one of the strangest competitors
entering the streaming war space.
On November 1st, the company's launching Apple TV+,
its most extravagant attempt at developing
original TV series and movies.
With nine original titles at launch,
a content budget north of $5 billion,
and multiple season orders from Hollywood A-listers,
Apple finally means business.
Apple is trying to get away from its past image.
Think more Reese Witherspoon acting
as an idealistic journalist,
and less Gwyneth Paltrow overviewing potential
App Store apps.
- God, I'm crying.
- Apple doesn't have Disney's catalog
of movies and TV series or Netflix's demonstrated string
of successful shows.
But Apple isn't playing the same game as Netflix or Disney.
Apple is taking its queues from Amazon.
(upbeat music)
It's best that they give TV+ as trying to replicate
what Amazon did.
- For free! (audience applauding)
- Apple is gonna give one free year of TV+
to anyone who purchases a new or refurbished product.
Those people can then give five free subscriptions
to family members and friends
via Apple's family sharing plan.
Think of it as Apple Prime Video.
But let's get the but out of the way first.
TV+ technically isn't free.
It comes with a $5 month price tag.
That's only $2 cheaper than Disney+,
but unlike Disney, Apple's hoping to leverage
its hardware to give people TV+ for free.
Apple has 1.4 billion active devices around the world.
If that trend continues, that means hundreds of millions
of people are gonna get TV+ for free.
There's probably a lot of people
watching this who are gonna buy an Apple product
in the next few months.
Even if it's just to check out the shows and movies
that Apple is hyping up,
they're probably gonna subscribe to TV+.
It's free so why not?
Throughout the year, Apple is gonna continue
to add to its catalog with movies and TV shows
that keep people hooked.
But TV+ is just one ingredient.
Apple already announced its first bundle.
Those on Apple Music student plan, will be able to get
Apple TV+ for free.
Apple is also reportedly working on a bundle
that could include its other services,
that its regular Music plan, News,
its new gaming platform, Apple Arcade
as well as additional iCloud storage.
Like Amazon Prime Video, Apple TV+ isn't designed
to be a major revenue driver for the company.
It's not an iPhone, but selling services
is a key part of Apple's feature.
If you forget that you're actually paying for TV+,
then the bundle works.
Amazon Prime is the ideal situation.
It's only after you're done buying toilet paper
that an ad for a Fleabag or Marvelous Mrs. Maisel pops up,
reminding you that through Amazon Prime,
you have access to these award-winning shows.
Apple might do the same.
They're already kind of doing it.
If I open up iTunes, maybe I wanna check out
the new Selena Gomez track.
I get served an ad that says, "Free on Apple TV."
If I click on it, I also get served with this big reminder
that Apple TV+ is coming on November 1st.
You have to imagine that it's only gonna be more prominent
once the service actually launches.
I could be reading an article on Apple News
or playing a game on Apple Arcade,
and I'll probably be served an ad for "The Morning Show,"
one of Apple's most anticipated shows.
Figuring out what a streaming service looks like
is key into a player in the streaming wars.
There are content-driven strategies
and there are service-based strategies.
Think Disney+, the first week is free,
but for 6.99 a month after that,
you're basically just signing up to stream
a big portion of Disney's library.
There are some new shows and movies
but there's also a good chance people just wanna be able
to stream all eight Star Wars movies
before "The Rise of Skywalker" comes out.
(dramatic music)
Apple is eventually trying to sell people on efficiency.
Unlike Disney+ or streaming services like HBO Max,
they don't come with gaming, news or music subscriptions.
Apple, like Amazon, wants to put everything
into one place.
They wanna sell you on easiness.
The more tighten people are to Apple's ecosystem,
the better it is for Apple.
The company just needs to give into people,
it's also better for them.
Steven Shure, the former vice president of Amazon Prime
told Recode earlier this year that when Prime
first launched, it struggled.
It wasn't until Video and Music that Amazon Prime
really took off.
Video in particular was a big, big transformer.
Jeff Bezos, the CEO of Amazon has long credited
Amazon Prime Video as a key player in helping
to bring in Amazon Prime subscribers.
Shows like Transparent are winning Emmys.
And people wanted to see what all the hype was about.
Bezos claims that the more time people spend on video,
the more likely they are to buy things
from the Amazon store.
Amazon developed a strategy
that Apple's eventually gonna wanna copy.
Create a digital shop for everything
and people are eventually gonna wanna stay.
But even though TV+ is free right now,
we are eventually gonna pay.
Whether it's through being hooked on TV+'s offerings
or subscribing to Apple's inevitable bundle,
there will be a monthly fee we pay,
but it's an easier sell for Apple to get people
hooked on a bundle they can't live without.
If I'm paying every month for music and news and gaming
and TV, it's less likely I'm gonna leave.
Even though Apple's streaming service
isn't gonna replace Netflix,
there's a good chance that one year from now,
we're still gonna be watching TV+
and willing to pay for more.
Once you're in, it's hard to get out.
Thanks for watching, guys.
I wanna draw your attention to a real big collaboration
happening across YouTube right now.
It's being led by MrBeast and it's called Team Trees.
If you go to teamtrees.org and donate a dollar,
the Arbor Day Foundation match that by planting a tree.
The goal is to reach 20 million
and they're about halfway there.