UPDATED 22:19 EDT / OCTOBER 10 2018

APPS

Report: Apple’s on-demand video service will be partially free to Apple users

Apple Inc.’s long-rumored Netflix-like video subscription service is closer to fruition with a surprising twist, as a new report claimed the core service will be free for Apple device owners.

CNBC, quoting people familiar with the matter, claimed the digital video service will marry original content and subscription services from legacy media companies with owners of Apple devices not only getting a preinstalled “TV” application but also free access to Apple-created content.

Leaning more toward Amazon.com Inc.’s offerings versus Netflix, the as yet un-launched service is claimed to offer subscription “channels,” which will allow customers to sign up for online-only services, such as those from HBO and Starz.

Apple has been rumored to be launching its own take on subscription video for a number of years and it already has in part, given that Apple Music subscribers currently have access to exclusive video content, not only music videos but exclusive video from artists such as Taylor Swift.

Even prior to the service’s launch, Apple was said to be spending about $1 billion on original content this year, targeting “PG-rated” shows that appeal to wide audiences. An apparent obsession with only PG content was claimed, in September, to be Apple’s desire to avoid damaging its brand or turning away potential customers.

Apple is alleged to have killed “Vital Signs,” a series from hip-hop star and producer Dr. Dre, from the under-development streaming service because it featured violence, drugs and sex scenes.

In addition, it was claimed that a drama based on a morning news show starring Jennifer Aniston and Reese Witherspoon was partially rejected because of edgy humor and not being “upbeat” enough. A show from Whitney Cummings about the #MeToo movement also was allegedly canceled because it was about a sensitive topic. Apple even allegedly requested that a show from director M. Night Shyamalan remove crucifixes from characters’ homes because they may offend non-Christians.

Although Apple maintains the position of the world’s largest company by market capitalization, it’s also a company that despite its solid record in hardware has a poor history in service provision. Starting way back in 1994 with eWorld, Apple, with the exception of iTunes, doesn’t do add-on services well. Its efforts in cloud-based services, called iCloud today but before that Mac.com, MobileMe, Applelink and probably a few other names lost in time, has always struggled.

Apple Music, while serving as a reasonable replacement for Apple’s once-dominant iTunes service, still plays second fiddle today to Spotify AB.

The new services will be welcomed by Apple fans and likely will be a decent money maker for the company, but it’s unlikely Netflix Chief Executive Reed Hastings will lose any sleep.

Photo: Tony Webster/Flickr

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