If rumors are to be believed, Apple is ready to announce the much anticipated streaming service next month. And according to the latest report, the streaming service is expected to cost $ 15 / month.
While many believe that Apple's new venture will be a big hit, Jefferies analyst Tim O & # 39; Shea has another opinion. O & # 39; Shea claims that the way forward for Cupertino-based companies won't be smooth sailing.
The road ahead of Apple's Streaming Video Service seems to be full of challenges
The analyst says there are two ways to succeed in the streaming video service sector. While one way is to create original and unique content pretty much like Netflix, the other should have access to the popular content of the major studios and networks.
Shea emphasizes that the tech girl at the moment does not seem to be perfectly adapted to performing any of these two important things.
"Apple uses a fraction of what Netflix uses on original shows and movies, which means that basically it will be far more dependent on streaming video gigantic on third-party content, but its plans to reduce revenue on "30% can't sit well with many Hollywood studios and networks. It's hard to see how these economies fly," says Shea.
However, the analyst believes Apple has the resources to lead the streaming video service industry thanks to it Increasingly Reliable Ecosystem and Massive Installation Base
Although the technology giant succeeds in collecting 250 million users by 2023, the service will still be able to generate only 5% of its total revenue, meaning it will not be able to deliver that kind of money that iPhones have given over the years.
Only Time would say if Apple failed to manage the roost now, all I can say is that it gets extreme Challenging for Apple to become a reputed player in streaming video streaming. Of course, it has both labor and billions of dollars to turn the tide into its favor.
But only time will tell if tech giant removes the crown from Netflix, which boasts an enviable 1
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