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  • A new service unlike anything that's been done before.

  • Apple is one of the strangest competitors entering the streaming war space.

  • On November 1st, the company's launching Apple TV Plus, 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 orders from Hollywood A-listers, Apple finally means business.

  • Apple is trying to get away from its past image.

  • Think more Reese Witherspoon acting as an idealistic journalist, and less Gwyneth Paltrow reviewing potential App Store apps.

  • God, I'm crying.

  • Apple doesn't have Disney's catalog of movies and TV series, or Netflix's demonstrated string of successful shows, but Apple isn't playing the same game as Netflix or Disney.

  • Apple is taking its queues from Amazon.

  • It's best that they give TV plus as trying to replicate what Amazon did.

  • For free!

  • Apple is gonna give one free year of TV Plus to anyone who purchases a new or refurbished product.

  • Those people can then give five 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 "but" out of the way first.

  • TV Plus technically isn't free.

  • It comes with a $5 month price tag.

  • That's only $2 cheaper than Disney Plus, but unlike Disney, Apple's hoping to leverage its hardware to give people TV Plus for free.

  • Apple has 1.4 billion active devices around the world.

  • If that trend continues, that means hundreds of millions of people are gonna get TV Plus for free.

  • There's probably a lot of people watching this who are gonna buy an Apple product in the next few months.

  • Even if it's just to check out the shows and movies that Apple is hyping up, they're probably gonna subscribe to TV Plus.

  • It's free, so why not?

  • Throughout the year, Apple is gonna continue to add to its catalog with movies and TV shows that keep people hooked.

  • But TV Plus is just one ingredient.

  • Apple already announced its first bundle.

  • Those on Apple Music student plan, will be able to get Apple TV Plus for free.

  • Apple is also reportedly working 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 Plus isn't designed to be a major revenue driver for the company.

  • It's not an iPhone, but selling services is a key part of Apple's feature.

  • If you forget that you're actually paying for TV Plus then the bundle works.

  • Amazon Prime is the ideal situation.

  • It's only after you're done buying toilet paper that an ad for a Fleabag or Marvelous Mrs. Maisel pops up, reminding you that through Amazon Prime, you have access to these award-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 that says, "Free on Apple TV."

  • If I click on it, I also get served with this big reminder that Apple TV Plus is coming on November 1st.

  • You have to imagine that it's only gonna be more prominent once the service actually launches.

  • I could be reading an article on Apple News or playing a game on Apple Arcade, and I'll probably be served an ad for "The Morning Show," one of Apple's most anticipated shows.

  • Figuring out what a streaming service looks like is key into a player in the streaming wars.

  • There are content-driven strategies, and there are service-based strategies.

  • Take Disney Plus: 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 chance people just wanna be able to stream all eight Star Wars movies before "The Rise of Skywalker" comes out.

  • Apple is eventually trying to sell people on efficiency.

  • Unlike Disney Plus or streaming services 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 tied in people are to Apple's ecosystem, the better it is for Apple.

  • The company just needs to give into people, it's also better for them.

  • Steven Shure, the former vice president of Amazon Prime told Recode earlier this year that when Prime first launched, it struggled.

  • It wasn't until Video and Music that Amazon Prime really took off.

  • Video in particular was a big, big transformer.

  • Jeff Bezos, the CEO of Amazon, has long credited Amazon Prime Video as a key player in helping to bring in Amazon Prime subscribers.

  • Shows like Transparent are winning Emmys.

  • And people wanted to see what all the hype was about.

  • Bezos claims that the more time 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 eventually gonna wanna stay.

  • But even though TV Plus is free right now, we are eventually gonna pay.

  • Whether it's through being hooked on TV Plus' offerings or subscribing to Apple's inevitable bundle, there will be a monthly fee we pay.

  • But it's an easier sell for Apple to get people hooked on a bundle they can't live without.

  • If I'm paying every month for 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 chance that one year from now, we're still gonna be watching TV Plus and willing to pay for more.

  • Once you're in, it's hard to get out.

  • Thanks for watching, guys.

  • I wanna draw your attention to a real big collaboration happening across YouTube right now.

  • It's being led by MrBeast and it's called Team Trees.

  • If you go to and donate a dollar, the Arbor Day Foundation will match that by planting a tree.

  • The goal is to reach 20 million and they're about halfway there.

A new service unlike anything that's been done before.

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Why Apple TV Plus is basically free

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    Mackenzie posted on 2019/12/13
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