Apple may be best known as the maker of iPhones, but the tech giant is branching out again. The company plans to launch a new video streaming service, which may create some interesting rivalries.
The company has spent over $1 billion developing original shows for its service, according to Apple Insider. The main allure of Apple’s service was allowing viewers to bundle their favorite networks, but a lot of that is still in the works.
Video services are becoming increasingly popular as companies realize the potential revenue they can bring in. Apple’s service will be like Amazon’s Prime Video and Netflix, featuring TV shows and movies either acquired or funded by Apple, as reported by Bloomberg.
Lion Gate’s Starz; CBS, the owner of Showtime, and Viacom will all offer subscription services through Apple’s platform, according to CNBC. It is also said that a source told CNBC that HBO isn’t as far along in discussions with Apple, so the service may launch without them.
Netflix and Hulu probably won’t be offered on the service. In fact, Netflix doesn’t even allow users to sign up through the App Store anymore because Apple takes too big of a cut. According to Vox, Apple takes a 30% cut of in-app subscriptions on iOS, and the number drops to 15% if customers keep their subscription for a year.
Apple’s new video service opens up a potential rivalry with Netflix, who is obviously big in the streaming world. If Apple does streamline services and develops great original content, Netflix will have some competition.
Sources told Bloomberg the video service will launch on March 25 alongside Apple’s news subscription offerings. However, CNBC maintains Apple is planning a launch in April or May.