Apple Inc. plans to reveal the Apple TV+ film and TV subscription service by November, some portion of a drive to reach $50 billion in service sales by 2020.
The company will present a little choice of shows and afterward grow its list all the more now and again several months, people familiar with the issue said. A free preliminary is likely as Apple develops its library, said the people, who asked not to be recognized because the plans aren’t public.
The iPhone maker is entering an increasingly crowded field, led by streaming pioneer Netflix Inc. and Amazon.com Inc. In the coming months, Walt Disney Co., AT&T Inc., and Comcast Corp.’s NBCUniversal will debut new offerings — all targeted at the growing ranks of viewers who are canceling cable-TV subscriptions or watching on mobile devices.
Apple is pushing into services to generate added revenue from its large base of iPhone, iPad, Mac and Apple Watch users. Consumers have been slower to replace hardware recently due to higher prices, market saturation, economic headwinds and a lack of new, breakthrough features.
The company could head off a revenue slowdown by coaxing users to subscribe to the new services. Cupertino, California-based Apple could also potentially boost revenue by tying services to the iPhone upgrade program, which lets customers update to new models annually via monthly payment plans.
Apple’s initial slate of shows will include “The Morning Show,” Steven Spielberg’s “Amazing Stories,” “See” with Jason Momoa, “Truth Be Told” with Octavia Spencer, and a documentary series about extravagant houses called “Home.”
On Monday, the company released the second trailer for “The Morning Show,” starring Jennifer Aniston, Reese Witherspoon, and Steve Carell.
The TV service will be part of Apple’s TV app, which comes installed on the company’s devices, and will also be accessible from third-party products, like Roku and Amazon Fire TV boxes, and Samsung televisions.
In the fiscal third quarter, services represented a record 21% of Apple’s sales, while the iPhone continued to dip below 50% of the total.
Analysts have suggested Apple TV+ could top 100 million subscribers in the next half-decade, which would make it a major challenger to Netflix and Amazon.
The company is making a big commitment to video, including around $300 million alone to two seasons of “The Morning Show,” according to people familiar with the matter.