Why Apple may have Netflix 'sweating bullets'
Apple is making a very big bet on streaming and setting aside $6 billion for original content on only five shows. Will the gamble win over consumers?
“It probably isn't enough in and of itself,” said Strat Americas managing director Seth Schachner to FOX Business’ Lauren Simonetti on Wednesday. “But there’ll be a big, long series of shows. They’ve got a great lineup.”
Apple TV + is expected to launch this fall and will reportedly cost $10 per month and be available in over 100 countries. The tech giant reportedly spent hundreds of millions of dollars on its upcoming star-studded show called “The Morning Show," starring Jennifer Aniston, Reese Witherspoon and Steve Carrell, according to the Financial Times, which amounts to a higher price tag than "Game of Thrones." The HBO program supposedly cost $15 million per episode in its final season. The service will also include new productions from Oprah Winfrey and Steven Spielberg.
“It's a long term play for them and you know that handset and all those IOS devices -- there are over a billion, I think, 1.4 billion IOS enabled devices that are out there, you know, in the world and this will be a global launch for Apple.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 229.09 | +0.09 | +0.04% |
| DIS | THE WALT DISNEY CO. | 115.59 | +1.32 | +1.16% |
| NFLX | NETFLIX INC. | 896.64 | +12.79 | +1.45% |
Comparatively, Disney Plus is launching Nov. 12 for $7 per month and Netflix currently costs $13 per month, while Hulu’s newly announced monthly plan is $5.99.
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Schachner believes over time, like with many of these services, Apple will also roll out a bundling strategy.
He also noted that while Disney’s service is “very compelling,” he said, Netflix and other smaller niche players should be “sweating bullets.”