According to CCS Insight, an analyst firm, tech giant Apple could introduce a Netflix-like video product in 2018. The prediction was contained in a report that is released annually and which aims to analyze emerging trends in the technology industry. With Apple’s video subscription product, original content would prominently feature especially in light of the fact that the iPhone maker has a strong presence in hardware and its online services business is growing at a rapid pace.
For Apple software and services are being viewed as the next drivers of growth in the future since the life cycles of smartphones are getting longer. The software and services also presents an opportunity waiting to be exploited since the Cupertino, California-based tech giant already possesses a massive user base that already owns Apple’s hardware products ranging from Apple TV, the iPhone, the iPad, Mac desktop computers and the iPod Touch.
Software and services
In the quarter that ended in September the revenues that Apple generated from software and services reached a figure of $8.5 billion having grown at a rate of 34% compared to a similar period a year ago. Video could assist in the growth of this revenue segment and would also be a complement to other subscription services that Apple has introduced such as Apple Music.
This would not be the first time that Apple is dabbling in original video content and this year ‘Carpool Karaoke’ was made available on Apple Music. The chief executive officer of Apple, Tim Cook, has previously said that the largest company in the world by market capitalization was interested in original content and was currently on a learning curve as it considers ways and strategies it could employ before entering the space.
Due to the changes in the content landscape, major players in the sector are expected to change their strategies. According to CCS Insight, Netflix could unveil new services and pricing options as it seeks growth in revenues.
“The prediction is that Netflix gives new pricing options for video to allow people to buy videos or rent them on an a la carte basis. Equally, we expect Netflix to move to other areas and cross-sell games and music,” CCS Insight’s multiplay and media vice president, Paolo Pescatore, said.
In the United States at the moment Netflix offers its customers three pricing plans with the basic one starting at a monthly fee of $7.99. But since the costs of acquiring content is rising and with more players entering the segment the online streaming giant will be forced to experiment and try out new options, according to Pescatore.