Eric Paulsen

Eric Paulsen

I wanted to be in radio since I was four - and four decades later I still haven't grown out of it...Full Bio

 

Apple's new streaming service takes on Netflix with a $5/month price

The streaming business is about to change again and enter a bold new era.

With Walt Disney recently announcing its own streaming service, Apple is getting into the game too, getting ready to offer its own streaming service to compete with Netflix. While revealing their intention wasn't unexpected - Apple has been working on producing original content for a while now - what raised some eyebrows was its projected price: $5 per month starting on November 1st.

Branded Apple TV Plus, the $5 monthly fee is unusual for Apple, which usually charges a premium for its products and services. By comparison, Netflix is charging $13 per month; Amazon is charging $9 per month while Hulu charges $6 per month.

Apple revealed the news on Tuesday, September 10th as it unveiled three new iPhones that didn't exactly ruffle any feathers or excite Apple devotees.

Netflix is the leader in streaming services, with over 150 million subscribers. It began in 2007, right around the time Apple released the first iPhone.

Apple's CEO Tim Cook didn't say too much about the new streaming TV service other than its pricing and when it would be available, although he did show a trailer for a new Jason Momoa-led series called “See.”

The stakes are high, as each of these services are spending big money on original content. Apple has been spending billions of dollars for original programming, including "The Morning Show," a comedy featuring Jennifer Aniston, Steve Carrell, and Reese Witherspoon. Nine original shows will debut in November, with more coming. The service will only carry Apple’s original programming and the company admits it will take a loss for a few years as it ramps up.

If you'll be in the market for a new iPhone, iPad, iPod Touch, or Mac, by the way, Apple will offer you a year of free TV access.

Netflix started to focus on its own content in 2013. It now has a massive library of original programming and spends a staggering (at least to me) nearly $10 billion each year on its lineup.

With Disney also joining the fray, it means two epic industry giants are going after Netflix, Amazon, and Hulu.

How will all this shake out? No doubt one or two of these companies will buy up one or two of the others eventually, since content is king and they'll want to scale up both customers and pricing. We'll see- and stream!

Here's more on the service:

Photo credit: Getty images


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