Why Apple TV Plus is basically free
A new service unlike anythingthat's been done before. - Apple is one of thestrangest competitors entering the streaming war space. On November 1st, thecompany's launching Apple TV+, its most extravagant attempt at developing original TV series and movies. With nine original titles at launch, a content budget north of $5 billion, and multiple season ordersfrom Hollywood A-listers, Apple finally means business. Apple is trying to getaway from its past image. Think more Reese Witherspoon acting as an idealistic journalist, and less Gwyneth Paltrowoverviewing potential App Store apps. - God, I'm crying. - Apple doesn't have Disney's catalog of movies and TV series orNetflix's demonstrated string of successful shows. But Apple isn't playing thesame game as Netflix or Disney. Apple is taking its queues from Amazon. (upbeat music) It's best that they giveTV+ as trying to replicate what Amazon did. - For free!(audience applauding) - Apple is gonna give one free year of TV+ to anyone who purchases anew or refurbished product. Those people can then givefive free subscriptions to family members and friends via Apple's family sharing plan. Think of it as Apple Prime Video. But let's get the butout of the way first. TV+ technically isn't free. It comes with a $5 month price tag. That's only $2 cheaper than Disney+, but unlike Disney,Apple's hoping to leverage its hardware to give people TV+ for free. Apple has 1.4 billion activedevices around the world. If that trend continues, thatmeans hundreds of millions of people are gonna get TV+ for free.
There's probably a lot of people watching this who aregonna buy an Apple product in the next few months. Even if it's just to checkout the shows and movies that Apple is hyping up, they're probably gonna subscribe to TV+. It's free so why not? Throughout the year,Apple is gonna continue to add to its catalogwith movies and TV shows that keep people hooked. But TV+ is just one ingredient. Apple already announced its first bundle. Those on Apple Music studentplan, will be able to get Apple TV+ for free. Apple is also reportedlyworking on a bundle that could include its other services, that its regular Music plan, News, its new gaming platform, Apple Arcade as well as additional iCloud storage. Like Amazon Prime Video,Apple TV+ isn't designed to be a major revenuedriver for the company. It's not an iPhone, but selling services is a key part of Apple's feature. If you forget that you'reactually paying for TV+, then the bundle works. Amazon Prime is the ideal situation. It's only after you'redone buying toilet paper that an ad for a Fleabag orMarvelous Mrs. Maisel pops up, reminding you that through Amazon Prime, you have access to theseaward-winning shows. Apple might do the same. They're already kind of doing it. If I open up iTunes,maybe I wanna check out the new Selena Gomez track. I get served an ad thatsays, "Free on Apple TV." If I click on it, I also getserved with this big reminder that Apple TV+ is coming on November 1st. You have to imagine that it'sonly gonna be more prominent once the service actually launches. I could be reading anarticle on Apple News or playing a game on Apple Arcade, and I'll probably be servedan ad for "The Morning Show," one of Apple's most anticipated shows. Figuring out what astreaming service looks like is key into a playerin the streaming wars. There are content-driven strategies and there are service-based strategies. Think Disney+, the first week is free, but for 6.99 a month after that, you're basically just signing up to stream a big portion of Disney's library. There are some new shows and movies but there's also a good chancepeople just wanna be able to stream all eight Star Wars movies before "The Rise of Skywalker" comes out. (dramatic music) Apple is eventually tryingto sell people on efficiency. Unlike Disney+ or streamingservices like HBO Max, they don't come with gaming,news or music subscriptions.
Apple, like Amazon,wants to put everything into one place. They wanna sell you on easiness. The more tighten peopleare to Apple's ecosystem, the better it is for Apple. The company just needsto give into people, it's also better for them. Steven Shure, the former vicepresident of Amazon Prime told Recode earlier thisyear that when Prime first launched, it struggled. It wasn't until Video andMusic that Amazon Prime really took off. Video in particular wasa big, big transformer. Jeff Bezos, the CEO ofAmazon has long credited Amazon Prime Video asa key player in helping to bring in Amazon Prime subscribers. Shows like Transparent are winning Emmys. And people wanted to seewhat all the hype was about. Bezos claims that the moretime people spend on video, the more likely they are to buy things from the Amazon store. Amazon developed a strategy that Apple's eventually gonna wanna copy. Create a digital shop for everything and people are eventuallygonna wanna stay. But even though TV+ is free right now, we are eventually gonna pay. Whether it's through beinghooked on TV+'s offerings or subscribing to Apple'sinevitable bundle, there will be a monthly fee we pay, but it's an easier sellfor Apple to get people hooked on a bundle theycan't live without.
If I'm paying every monthfor music and news and gaming and TV, it's less likely I'm gonna leave. Even though Apple's streaming service isn't gonna replace Netflix, there's a good chancethat one year from now, we're still gonna be watching TV+ and willing to pay for more. Once you're in, it's hard to get out. Thanks for watching, guys. I wanna draw your attentionto a real big collaboration happening across YouTube right now. It's being led by MrBeastand it's called Team Trees. If you go to teamtrees.organd donate a dollar, the Arbor Day Foundationmatch that by planting a tree. The goal is to reach 20 million and they're about halfway there.
There's probably a lot of people watching this who aregonna buy an Apple product in the next few months. Even if it's just to checkout the shows and movies that Apple is hyping up, they're probably gonna subscribe to TV+. It's free so why not? Throughout the year,Apple is gonna continue to add to its catalogwith movies and TV shows that keep people hooked. But TV+ is just one ingredient. Apple already announced its first bundle. Those on Apple Music studentplan, will be able to get Apple TV+ for free. Apple is also reportedlyworking on a bundle that could include its other services, that its regular Music plan, News, its new gaming platform, Apple Arcade as well as additional iCloud storage. Like Amazon Prime Video,Apple TV+ isn't designed to be a major revenuedriver for the company. It's not an iPhone, but selling services is a key part of Apple's feature. If you forget that you'reactually paying for TV+, then the bundle works. Amazon Prime is the ideal situation. It's only after you'redone buying toilet paper that an ad for a Fleabag orMarvelous Mrs. Maisel pops up, reminding you that through Amazon Prime, you have access to theseaward-winning shows. Apple might do the same. They're already kind of doing it. If I open up iTunes,maybe I wanna check out the new Selena Gomez track. I get served an ad thatsays, "Free on Apple TV." If I click on it, I also getserved with this big reminder that Apple TV+ is coming on November 1st. You have to imagine that it'sonly gonna be more prominent once the service actually launches. I could be reading anarticle on Apple News or playing a game on Apple Arcade, and I'll probably be servedan ad for "The Morning Show," one of Apple's most anticipated shows. Figuring out what astreaming service looks like is key into a playerin the streaming wars. There are content-driven strategies and there are service-based strategies. Think Disney+, the first week is free, but for 6.99 a month after that, you're basically just signing up to stream a big portion of Disney's library. There are some new shows and movies but there's also a good chancepeople just wanna be able to stream all eight Star Wars movies before "The Rise of Skywalker" comes out. (dramatic music) Apple is eventually tryingto sell people on efficiency. Unlike Disney+ or streamingservices like HBO Max, they don't come with gaming,news or music subscriptions.
Apple, like Amazon,wants to put everything into one place. They wanna sell you on easiness. The more tighten peopleare to Apple's ecosystem, the better it is for Apple. The company just needsto give into people, it's also better for them. Steven Shure, the former vicepresident of Amazon Prime told Recode earlier thisyear that when Prime first launched, it struggled. It wasn't until Video andMusic that Amazon Prime really took off. Video in particular wasa big, big transformer. Jeff Bezos, the CEO ofAmazon has long credited Amazon Prime Video asa key player in helping to bring in Amazon Prime subscribers. Shows like Transparent are winning Emmys. And people wanted to seewhat all the hype was about. Bezos claims that the moretime people spend on video, the more likely they are to buy things from the Amazon store. Amazon developed a strategy that Apple's eventually gonna wanna copy. Create a digital shop for everything and people are eventuallygonna wanna stay. But even though TV+ is free right now, we are eventually gonna pay. Whether it's through beinghooked on TV+'s offerings or subscribing to Apple'sinevitable bundle, there will be a monthly fee we pay, but it's an easier sellfor Apple to get people hooked on a bundle theycan't live without.
If I'm paying every monthfor music and news and gaming and TV, it's less likely I'm gonna leave. Even though Apple's streaming service isn't gonna replace Netflix, there's a good chancethat one year from now, we're still gonna be watching TV+ and willing to pay for more. Once you're in, it's hard to get out. Thanks for watching, guys. I wanna draw your attentionto a real big collaboration happening across YouTube right now. It's being led by MrBeastand it's called Team Trees. If you go to teamtrees.organd donate a dollar, the Arbor Day Foundationmatch that by planting a tree. The goal is to reach 20 million and they're about halfway there.
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