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CandW discuss the strategic value of Apple TV+

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Apple TV+ launched this week. We discuss the service and experience. We also look at how it fits into the Apple TV app strategy and a possible subscription model that includes hardware.

Chapter 1: Apple TV+ much less than full SVOD (1:25)

Both Will and I share our experiences with Apple TV+. We both layout our reasons that it is not a worthy competitor to services like Netflix or HBO Now. However, that may not be the point.

[Update: Thursday evening, November 7th, I was unable to play episode 2 of For All Mankind and Dickinson. I tried repeatedly on my Roku. Netflix worked just fine.

Chapter 2: Should Apple TV+ be free to Apple users? (8:40)

Apple TV+ costs $4.99 a month unless you buy a new Apple device, in which case it is free for the first year. Will wondered if it would be more valuable to Apple if the company gave it didn’t charge Apple users at all.

Chapter 3: Making Apple TV the default TV app (10:30)

The Apple TV app is an important strategic product for Apple. The company is attempting to become the default television app for millions of people. Apple TV+ will attract weekly viewers, at best.

Chapter 4: Hardware and services as a subscription (12:00)

Dylan Byers from NBC news thinks Apple is preparing a subscription service the includes all Apple’s core services and a new iPhone every two or three years. He thinks Apple TV+ fits nicely into the mix. We discuss if the strategy is a good one for Apple.

Chapter 5: How much does Apple TV+ help with key strategies? (15:30)

Apple TV+ was created to aid directly in the Apple TV app strategy. It also could potentially help with the hardware-plus-service approach proposed by Dylan Byers. However, is it useful in either case?

Chapter 6: Making Apple TV app successful (16:50)

Getting people to switch subscriptions to be inside the Apple TV app is a tough thing to do. Will doesn’t think switching is necessary to be successful. Instead, he feels that watching inside the app is enough.

Chapter 7: Apple TV app strategy (21:00)

Convincing people outside of the Apple ecosystem to buy subscriptions inside the Apple TV app will be tough. That automatically cuts the overall market in half, since iOS and Android share the marketing for mobile devices. Note: The Apple TV app is not available on Android devices. Will didn’t see this as a problem because there are a billion iPhone users.


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