Apple's Latest Video Strategy: Give it Away to Device Owners
In the latest chapter of the years-long waiting game for Apple to announce a video service, CNBC reports the company's latest plan is to give away its premium content to Apple TV or iOS device owners. Citing "people familiar with the matter," CNBC says Apple will use its own produced premium content to attract viewers to its platform, then attempt to sell them on subscriptions to third-party services such as HBO and Starz.
Apple has already created programs such as "Carpool Karaoke" and "Planet of the Apps," and will reportedly spend $1 billion this year on original programming. It's on the hunt for tent pole franchises that will attract a wide viewership, but that are also free of sex and violence.
When the service launches, device owners will find the free content in Apple's pre-installed TV app. The idea is to create a central destination that provides all the viewer's content choices in one place. "Carpool Karaoke" is already free in the app, but watching "Planet of the Apps" requires an Apple Music subscription.
Apple is currently in development or production with around two dozen projects, including a drama called "Are You Sleeping," which will star Octavia Spencer and is about a podcast that reopens a murder investigation. Apple also has deals with Oprah Winfrey and Sesame Street.
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