Why Apple TV Plus is basically free

Why Apple TV Plus is basically free


– A new service unlike anything
that’s been done before. – Apple is one of the
strangest competitors entering the streaming war space. On November 1st, the
company’s launching Apple TV+, its most extravagant attempt at developing original TV series and movies. With nine original titles at launch, a content budget north of $5 billion, and multiple season orders
from Hollywood A-listers, Apple finally means business. Apple is trying to get
away from its past image. Think more Reese Witherspoon acting as an idealistic journalist, and less Gwyneth Paltrow
overviewing potential App Store apps. – God, I’m crying. – Apple doesn’t have Disney’s catalog of movies and TV series or
Netflix’s demonstrated string of successful shows. But Apple isn’t playing the
same game as Netflix or Disney. Apple is taking its queues from Amazon. (upbeat music) It’s best that they give
TV+ as trying to replicate what Amazon did. – For free!
(audience applauding) – Apple is gonna give one free year of TV+ to anyone who purchases a
new or refurbished product. Those people can then give
five free subscriptions to family members and friends via Apple’s family sharing plan. Think of it as Apple Prime Video. But let’s get the but
out of the way first. TV+ technically isn’t free. It comes with a $5 month price tag. That’s only $2 cheaper than Disney+, but unlike Disney,
Apple’s hoping to leverage its hardware to give people TV+ for free. Apple has 1.4 billion active
devices around the world. If that trend continues, that
means hundreds of millions of people are gonna get TV+ for free. There’s probably a lot of people watching this who are
gonna buy an Apple product in the next few months. Even if it’s just to check
out the shows and movies that Apple is hyping up, they’re probably gonna subscribe to TV+. It’s free so why not? Throughout the year,
Apple is gonna continue to add to its catalog
with movies and TV shows that keep people hooked. But TV+ is just one ingredient. Apple already announced its first bundle. Those on Apple Music student
plan, will be able to get Apple TV+ for free. Apple is also reportedly
working on a bundle that could include its other services, that its regular Music plan, News, its new gaming platform, Apple Arcade as well as additional iCloud storage. Like Amazon Prime Video,
Apple TV+ isn’t designed to be a major revenue
driver for the company. It’s not an iPhone, but selling services is a key part of Apple’s feature. If you forget that you’re
actually paying for TV+, then the bundle works. Amazon Prime is the ideal situation. It’s only after you’re
done buying toilet paper that an ad for a Fleabag or
Marvelous Mrs. Maisel pops up, reminding you that through Amazon Prime, you have access to these
award-winning shows. Apple might do the same. They’re already kind of doing it. If I open up iTunes,
maybe I wanna check out the new Selena Gomez track. I get served an ad that
says, “Free on Apple TV.” If I click on it, I also get
served with this big reminder that Apple TV+ is coming on November 1st. You have to imagine that it’s
only gonna be more prominent once the service actually launches. I could be reading an
article on Apple News or playing a game on Apple Arcade, and I’ll probably be served
an ad for “The Morning Show,” one of Apple’s most anticipated shows. Figuring out what a
streaming service looks like is key into a player
in the streaming wars. There are content-driven strategies and there are service-based strategies. Think Disney+, the first week is free, but for 6.99 a month after that, you’re basically just signing up to stream a big portion of Disney’s library. There are some new shows and movies but there’s also a good chance
people just wanna be able to stream all eight Star Wars movies before “The Rise of Skywalker” comes out. (dramatic music) Apple is eventually trying
to sell people on efficiency. Unlike Disney+ or streaming
services like HBO Max, they don’t come with gaming,
news or music subscriptions. Apple, like Amazon,
wants to put everything into one place. They wanna sell you on easiness. The more tighten people
are to Apple’s ecosystem, the better it is for Apple. The company just needs
to give into people, it’s also better for them. Steven Shure, the former vice
president of Amazon Prime told Recode earlier this
year that when Prime first launched, it struggled. It wasn’t until Video and
Music that Amazon Prime really took off. Video in particular was
a big, big transformer. Jeff Bezos, the CEO of
Amazon has long credited Amazon Prime Video as
a key player in helping to bring in Amazon Prime subscribers. Shows like Transparent are winning Emmys. And people wanted to see
what all the hype was about. Bezos claims that the more
time people spend on video, the more likely they are to buy things from the Amazon store. Amazon developed a strategy that Apple’s eventually gonna wanna copy. Create a digital shop for everything and people are eventually
gonna wanna stay. But even though TV+ is free right now, we are eventually gonna pay. Whether it’s through being
hooked on TV+’s offerings or subscribing to Apple’s
inevitable bundle, there will be a monthly fee we pay, but it’s an easier sell
for Apple to get people hooked on a bundle they
can’t live without. If I’m paying every month
for music and news and gaming and TV, it’s less likely I’m gonna leave. Even though Apple’s streaming service isn’t gonna replace Netflix, there’s a good chance
that one year from now, we’re still gonna be watching TV+ and willing to pay for more. Once you’re in, it’s hard to get out. Thanks for watching, guys. I wanna draw your attention
to a real big collaboration happening across YouTube right now. It’s being led by MrBeast
and it’s called Team Trees. If you go to teamtrees.org
and donate a dollar, the Arbor Day Foundation
match that by planting a tree. The goal is to reach 20 million and they’re about halfway there.

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