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CandW discuss Apple’s $6B bet on TV and the TVOD crisis

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Apple has a lot of catching up to do if it wants to guarantee Apple TV+ success and position it as the lynchpin of its thrust into services. Especially so as the performance of iTunes is caught in the downdraft of the transactional video market.

Chapter 1: More details on Apple TV+ (1:00)

This week, Bloomberg reported pricing details for the upcoming Apple TV+. As well, The Financial Times says that Apple is increasing the amount it plans to spend on content. Will runs down the details of what was said.

Chapter 2: Comparing Apple to the new competition (3:50)

There are several new services launching from significant content providers towards the end of this year. Will compares the likely Apple entry to them and says that Apple TV+ success is anything but certain.

Chapter 3: Why this is the worst time to increase content spending (4:50)

It is good that Apple has boosted its content spending, but the company picked the worst time to do it. Production costs are through the roof, and content providers are reserving their best content for their services.

Chapter 4: Sony can help Apple in two significant ways (9:30)

Sony has been struggling with Sony Pictures for a while and now looks to be back-pedaling on its commitment to PlayStation Vue. Perhaps Apple could manage the two assets better and use them to bolster its TV efforts. Will is skeptical such a deal would bring enough content.

Chapter 5: Transactional video spending plummets (15:30)

Apple iTunes is one of the biggest online stores in the transactional video market. News this week from DEG shows that market took a big dive in the second quarter of 2019. I review the data, zeroing in on the horrible performance of the rental market. I also consider the two most prominent trends in home entertainment spending.


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