With just one sentence, Apple has become a formidable opponent of Netflix, Disney, Amazon and Google ...
Before today, who would have thought that Apple was so determined to pursue streaming video.
Until September 10, many people thought that the TV + video streaming service was just a "fun" rather than a truly serious business for Apple. After all, Apple is still a hardware company, with more than half of its revenue coming from iPhones. Apple's service segment has not had any remarkable points compared to the competition: Apple Pay, after its massive launch, has almost disappeared from the newspaper. Apple Card is often used as a joke. Not many people mentioned Apple News +. Apple Music, though the music service is ranked 2nd in the world but also does not surpass Spotify in terms of price or features.
Financial news sites simultaneously reported on the negative impact Apple has had on Disney and Netflix.
Then, in yesterday's event, Apple announced a special number: the monthly fee for Apple TV + will only be $ 5. With just that statement, Apple has surpassed all competitors to become the cheapest streaming video service provider in the world. Disney + costs 7 USD when purchased separately, 13 USD when buying ESPN and Hulu together. Netflix sells the SD package for . 9 USD and the "regular" (non 4K) HD package for 16 USD.
When Tim Cook announced the $ 5 figure, the whole hall cheered. Outside the hall, shares of Netflix and Disney dropped 3%. As for Roku, the brand of smart players commonly used with Netflix, Amazon Video and HBO Go has dropped by 11%. Suddenly, the big names in the streaming industry were greatly affected by a company that only sold computers and phones.
Netflix's new rival is the most powerful company in the world.
It's not hard to see why Apple has just announced the price of its very early streaming service, but its competitors have been so affected. Before yesterday's event, no one was waiting for Apple to really set its mind on TV +. After all, Apple, which is a hardware company, is looking to "earn more" from the service segment only.
The $ 5 / month figure proves the opposite: not to mention profits, Apple is really looking forward to a foothold in the video streaming industry. Disney and Netflix will now have to compete with an extremely serious opponent. And this opponent has hundreds of billions of dollars in cash, an abundance of famous users .
Obviously, this does not mean that Apple has won the streaming battle "in a single note", especially when the amount of content on Apple TV + is still not diverse. However, with just one announcement from Apple, the future path of Netflix and Disney + has become a lot more difficult.
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