If you had a choice of making a lot of money selling premium hardware that people bought every couple of years or so vs. selling them a service that they pay for every month, which would you pick? If you’re name is Tim Cook, the answer is both.
Apple, which has become one of the world’s most valuable companies mostly by selling devices, is also in the services business. This isn’t completely new. They already have Apple Music, iTunes and the app store but they now have a slew of new services including a credit card, a TV streaming service, an all-you-can read news service and a streaming gaming service.
Let’s take them one at a time:
Apple TV App
Apple TV Channels is an updated app that lets you watch news, sports, network shows and subscription TV all in one app that runs not only on iOS, Macintosh and Apple TV but will soon come to smart TVs from Samsung, Sony and Vizio as well the Roku streaming devices that compete with (and out-sell) Apple TV hardware.
Apple TV Plus
The premium TV streaming service will feature original content from. Monday’s announcement featured Reese Witherspoon, J.J. Abrams, Jennifer Aniston, Steve Carell, Oprah Winfrey, Steven Spielberg and celebrities who were on hand for the announcement at the Steve Jobs Theater at Apple HQ. Billed as “a new streaming service where the most creative minds in TV and film tell the kinds of stories only they can,” Apple says it will feature “original shows and movies across every genre, exclusively on the Apple TV app.” The service launches this fall but Apple didn’t specify the subscription price.
Apple News Plus
This is an all-you-can read magazine and newspaper subscription service that will include more than 300 publications including the Wall Street Journal, Los Angeles Times, Wired, Time, Rolling Stone, Fast Company and numerous other periodicals. It does not include the New York Times or Washington Post. The service will cost $9.99 a month, which includes sharing with up to six family members. It costs $9.99 a month after a one-month free trial.
Apple Arcade
This is an all-you-can-play streaming gaming service, initially featuring more than 100 new games. Games can also be played offline. There will be a family plan and the service will run only on Apple devices: iPhone, iPad, Mac and Apple TV.
Apple (credit) Card
Apple is launching its own credit card in partnership with Goldman Sachs bank. You sign up from an iPhone and can begin using it from the phone within minutes. You’ll also get a titanium MasterCard for your wallet with your name etched on the card. Apple says there will be no fees, not even late fees, and that it will transparently help users keep their balances (and interest payments) under control. One nice feature is that the app will show you the real names of the merchants that charge you rather than the obscure codes that sometimes show up on credit card statements. Apple also said that it will feature low interest rates, but didn’t specify the rate. Users will get 2% cash back immediately for all non-Apple purchases and 3% back on Apple purchases.