The new video service is expected to have original TV shows and movies that reportedly cost Apple more than $1 billion USA, far less than Netflix and HBO spend every year. Reports from various publications such as Cnet and Yahoo Finance indicate that Apple's new event will focus on their video streaming service.
Apple is set to offer the HBO, Showtime, and Starz channels for $9.99 per month each, while its news service will also cost $9.99.
For its video service, Apple may be investing as much as US$2 billion a year in original content, according to BTIG Research analyst Richard Greenfield, but that will be less than Netflix and some others.
Apple is expected to announce plans for TV and news subscription services on Monday when the technology giant hosts a live event at its California headquarters. Apple will collect the monthly fee, divide the developers' cut based on how often their games were played, and keep the rest.
There are silent predictions that Apple may come forward with a gaming subscription service. The keynote, teased with the tagline "It's show time" on the invites, is widely-rumoured to see the launch of Apple's long-awaited video streaming service.
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As already mentioned, the Apple event is being held at the Steve Jobs Theatre in Cupertino. Apple is likely considering popular paid titles on the App Store and would exclude titles that are free to download but generate revenue via in-app purchases. Now, they have to really think about the services and software that have been so uneven and compete with a lot of very different competitors.
Apple could discuss the service as soon as Monday, or it may choose to detail the offering at its conference for developers later this year. News Corp, owner of the Journal, was not immediately reachable for comment. Texture lets users subscribe to more than 200 magazines, and most of those will transfer to Apple's new service.
Bloomberg cited sources who have knowledge of Apple's plans Providing more details on how the service would work, Bloomberg reported that the unnamed service will focus on iPhones and iPads and the games that those devices are capable of playing. It has positioned that as leverage against Netflix's 139 million global customers and the 100 million subscribers to Amazon's Prime shipping program, which includes the video service.
Apple's keynote starts at 10AM PT, 1PM ET, 6PM GMT, 7PM CET and 10:30PM IST on March 25.
"Put more simply, Apple may be looking to disrupt cable TV by essentially becoming a cable TV provider", adds the report.