Why is it that Apple needs to be in a public fist fight with every possible competitor? All. The. Time. Just a few years ago Apple sold Services and Accessories, but was considered a hardware company.
All the big numbers announced every quarter were, well, mostly hardware. That is, until Apple began to transition to a Services company. Now, what makes up Services? Content. So, Apple is a content company, too. You know; like Netflix. And Amazon. And Hulu. And ViacomCBS. And all those, well, streaming content companies*.
Here’s a headline to know and love; unless you know better and don’t care for sci-fi. Ed Hardy:
NBC’s Peacock takes on Apple TV+ with Battlestar Galactica reboot nobody wants
Peacock is NBCs new streaming service– which doesn’t exist yet– and it is taking on Apple’s Apple TV+– which doesn’t exist yet. It doesn’t matter. It isn’t a contest. Apple might have a few dozen exclusive TV show-like-movie series, while NBC’s Peacock catalog will start with 15,000 shows.
Apple is not competing against NBC or Netflix or Amazon or Hulu or all the others too numerous to list (I cannot remember them all). NBCUniversal’s Peacock is eating Apple. Or, rather, it will eat Apple’s lunch when Peacock and Apple TV+ roll out and start collecting money.
You see, NBC is in the streaming game while Apple’s Apple TV+ is, too, but, like, totally different. We don’t know the Peacock price tag yet but suffice it to say it will be more than $4.99, Apple’s price.
So, what is Apple doing in the content business?
Trying to keep its customers happy. Instead of giving away another $1-billion or $10-billion to undeserving shareholders through buybacks and dividends, Apple decided to bankroll some exclusive content and give away a year’s subscription to anyone who buys a new Mac, iPhone, or iPad.
My math major mind tells me that Apple sells about 200-million of those a year, so by this time next year the company likely will have well North of 200-million Apple TV+ users. But, since the first year is free to hardware buyers, those won’t be counted as customers.
None of that really matters anyway because it should be obvious that Apple is not into content to compete with the likes of the *aforementioned video streaming services. Instead, Apple is using content to keep customers on the proper side of the Cupertino Walled Garden.
Wherever you read a headline about Apple competing from the *aforementioned video streaming services, well, just ignore it because that isn’t what Apple’s content is all about. The only competition is Apple’s check-writing prowess vs. that of, all those other companies flooding Hollywood with their money.