Apple plans Amazon-style distribution strategy

10 May, 2018, 14:28 | Author: Julian Harrison
  • Apple is reportedly cracking down on apps in the App Store that are sharing location date with third parties

Currently, customers have the option to download and subscribe to each streaming service individually through their respective apps.

Apple is planning to sell subscriptions to some video services direct via its TV app rather than have users subscribe via apps individually, according to a report by Bloomberg. For example, you can subscribe to Netflix directly from the streaming video service through its website (and Apple gets no cut), or subscribe through Netflix's app using your Apple ID (which allows Apple to take a percentage). It actually makes sense because the TV app is available on the Apple TV, iPhones, and iPads, which means that it is nearly universally available across Apple's ecosystem (save for the Mac).

Apple Inc.'s plan to reinvent cable TV is starting to look a lot like the strategy of its rival Amazon.com Inc. Much of that content can't be viewed without a paid subscription to a third-party service.

Bloomberg has published a report with new details about how Apple plans to leverage its TV app on iOS and Apple TV to add new subscribers to its ecosystem.




According to Bloomberg, sales from services climbed 31 per cent in the Q1, at US$9.2 billion.

Apple declined to comment on the project. Netflix and YouTube, owned by rival Alphabet Inc., operate the two largest online video services in the world outside of China. It also tried to create a package of premium channels like HBO, Starz and Showtime for a discounted price.

If Apple were to push through with its plan, the TV app will become the ultimate hub for users to find and stream content. It has been revealed that the Cupertino giant is now planning to offer subscriptions to streaming services via the app.

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