Was It A Good Decision For Apple To Launch Its Own Music Streaming Service? Why Or Why Not?
Apple tree Streaming Services Part of Shifting Corporate Strategy
Information technology seems that every day a television network, flick studio or multimedia company is launching its ain streaming service. It should not come as a big surprise that Apple is the latest entity to denote its own streaming services.
Information technology may seem at outset glance that the company is just trying to get its piece of the marketplace share already dominated past Netflix, Hulu and Amazon Prime. Or it'due south looking to compete against CBS, Disney, DC Comics and other media backdrop that have launched their own streaming services or program to before long.
The launch of streaming services is part of a broader strategy. Apple may soon be seen primarily as the company behind the latest iPhone or iPad. Instead, it's role of a shift away from products to get a company that'southward focused on providing valuable services.
How Are Apple tree Streaming Services Part of a Change in its Business Model?
In its latest earnings release, Apple continued to demonstrate its success, earning $83.3 billion. Notwithstanding, a closer look at the numbers reveals some interesting clues.
Sales for iPhones dropped by 15 percentage for the quarter compared to the aforementioned time period in 2018. Apple CEO cited customers holding on to older iPhones longer as a key reason behind the dip. What'due south more, the phone and tablet markets announced to be saturated, with little room to add new customers in new sectors.
The visitor is investing heavily in its existing and new services designed to simplify peoples' lives. Amid those investments are a commitment to smart homes, a focus on AI and improvements to its voice banana, Siri, which has fallen behind competitors like Amazon'due south Alexa.
What Will Be in the Apple Streaming Services?
The visitor plans to launch two different services later in 2019. Launching subscription services — entertainment and news — afterwards this year. The amusement service will package content from existing services such as CBS All Access, Showtime and Starz on iPads and iPhones. Information technology will likewise produce its own content with content from Steven Spielberg, Oprah Winfrey and Reese Witherspoon.
Is Apple Making Money off Services?
Yes. In its recent earnings study, services accounted for $10.9 billion in revenue, a 19 per centum year-over-yr increase. Consider the number of services Apple offers:
- Apple tree Music
- App Store
- iTunes
- Apple Books
- Apple Pay
- AppleCare+
That listing doesn't include services such equally Siri, Maps and iCloud which are free merely are bundled into hardware purchases.
There will ever be a place for innovative products, and Apple will certainly not abandon that side of its business, but a service orientation makes sense for the tech behemothic.
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Was It A Good Decision For Apple To Launch Its Own Music Streaming Service? Why Or Why Not?,
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