Apple’s showtime: everybody gets a service, partners get pennies

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Apple’s showtime: everybody gets a service, partners get pennies

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Apple’s showtime: everybody gets a service, partners get pennies
­­­­Apple is strengthening its household model by doubling down on family-friendly content subscriptions and payments
The model is reliant on hard bargains with mainly US partners, which risks sacrificing potential scale for a short-term boost in margin dollars
The new services offer glimpses of novel concepts, but stop short of taking risks to truly differentiate—a problem in TV, where Apple’s distribution advantage is slimmer than Oprah would have it

Contents

Announcements

Apple’s services: neither a platform nor a conglomerate

The Apple TV App: aspirations for cohesive content aggregation

  • Channels
  • Differentiating the product
  • A lack of cohesiveness
  • Winning the household

Apple TV+: the streaming home of Apple’s original productions

Little news in News+

Apple Card

Benefits for Apple

  • Potential challenges

Arcade: joining the dots for Apple’s gaming efforts

List of charts/tables

Figure 1. Apple gross margin %, Q1 2019 per segment

Figure 2. US monthly prices of Apple’s subscriptions

Figure 3. Number of available channels, US

Figure 4. Offsite link icons for non-channel partners

Figure 5. Apple TV release timeline vs. Amazon, Netflix and Roku

Figure 6. Stages of Apple TV+ productions

Figure 7. Apple TV+ production slate

Figure 8. Creatives partnered with Apple*, by location

Figure 9. Traffic on selected publishers sites (US, Feb 2019)

Figure 10. iPhone owners using Apple Pay to buy goods/services in-store, UK

Figure 11. Brands most indicative of being high-income, US 2016