Although Apple sold the iPhone, the iPad, and the Mac well in the past period, services constitute an important part of its profit. Rather, it is more important in a specific aspect, which is stability. As the iPhone is exposed to the lack of sales and their increase according to the products and the desire of the users. As for services such as software store, their income is constant and increasing, and this is one of the most important elements in the business world. So Apple decided to expand its services strongly in the last period through the music service, then Arcade, TV and News +. But with the exception of the music service, none of the other services have risen to the competition yet. How were Apple's services managed and why were they not achieving the desired success?
TV + service
Although competitors' subscriptions mostly start at $ 10 for streaming TV shows, Apple has decided that its service will start at $ 5. It also gave a one-year free service to the buyer of its new devices. And recently, it is giving it free to users of a discounted student subscription to the music service. But…
- Some users rate the service by the price: Amazon launched its video streaming service years ago. For a long time it was free for existing Prime users but not many used it. As happened with Apple, many qualified for its free service did not use it even for a long time.
- Offers not reached to competitors yet: Apple is new in the field of original shows (that is, those produced by the company) and did not make a noticeable production that attracts the attention of users around the world for a long time, as it hoped to do with shows such as See and attract celebrities such as Oprah Winfrey to attract viewers. Apple has also not contracted with other producers to display their programs as Netflix does, in order to attract users.
News + service
Apple already owned the News program, and its primary job was to attract users. He was providing news without the need to subscribe to advertising support. But it did not work with all of its features except in certain regions of the world. Then Apple launched its News + service, which collects news and paid articles from famous Western magazines. Indeed, the service attracted more than 200 subscribers in the first two days. Then subscriptions slowed down strongly. This was strongly demonstrated in several examples, such as:
- The number of subscriptions is so small that one of the major publishers, according to a CNBC report, stated that their monthly income from the service did not exceed 20-30 thousand dollars only. Much lower than expected numbers.
- Advertising revenue from the free service exceeds the paid service, according to another publisher. Of course, few subscribers. Other publishers have stated that the news service generates only 5% of the income that Apple promises.
Why? Well, the success of Apple News depends entirely on its iOS device user base. Since it does not provide the service on other systems. Despite the large and proud Apple user base, it is not easy to convince half of them to even subscribe to a new news service that costs ten dollars a month just because it looks good. They fetch news from major newspapers, ignore news websites, and are hugely popular in the news surfing sector on iOS and Android. Its choice of countries and available news providers is also severely limited.
Imagine that you cannot read Islam iPhone on the News + service. So what's the use of it? 😀
Gaming service is hard to judge right now. It does not contain many defects. It has a large number of games exceeding 100. The quality of the games is great. Apple hardware is excellent for playing these games. And fans of games on Apple devices increase every day. The service may not have made much money yet. Because Apple didn't particularly brag about it in its latest financial report. But gaming services in general, even those provided by major professionals such as Xbox and EA, need time to form a loyal audience that is willing to pay monthly in order to use the latest games.
what's the problem?
Everything might look beautiful when announced by Apple. Everything is shiny. Everything is beautiful. But all of this is to be expected. Simply because Apple is a company that has a lot of money and can spend without an account. For example, TV + service was planned to have an initial spending of $ XNUMX billion, but has exceeded $ XNUMX billion so far. With no noticeable success.
The problem is that Apple may have returned to what it tried to do before after the elimination of Steve Jobs. Trying to make a lot of things. This is very difficult for any company, especially a company like Apple whose strategy has always been to focus on the quality of a few products.
And multimedia production is a different business
In addition to all of the above, and although Apple is one of the most prominent in the technology arena, it is not a multimedia production house such as HBO or Netflix. This type of business not only needs money and planning, but also needs experience in the field and management of a different kind. It also includes success and loss for a long time before the goal is finally achieved. Are Apple investors waiting that long after they are accustomed to rapidly profiting from devices, cloud services, and selling apps and music?
What is the solution?
Several solutions dart online. Even before the announcement of Apple's services. The best solution to improve your video service to the fullest is to buy Netflix. As it was rumored for a long time before the launch of TV +. And Apple also purchased Beats before its music service to gain their expertise. In order to serve the news, Apple might have to release an Android app and spread the service to more countries. And with more service providers. Especially from news websites and their incorporation into the application well.
But Apple appears to be thinking otherwise for the time being. Its solution is an all-in-one service with a single subscription that combines music, TV and news services. Thus, the company wishes to make the services more attractive to subscribers. It also provides cash to fund services that are not profitable on their own, such as news.
But how much will the combined subscription cost? Is Apple improving news and television services to entice users to pay the extra price? This is what we can see at the end of this year. But it is certain that Apple is facing stiff competition from companies specializing in these areas for years.