Will Apple’s upcoming streaming service be able to compete with Netflix and Disney?

Will Apple's new foray into the broadcast swim in the same waters as Netflix and Disney, or will it go the way of Verizon's Go90? Recode executive editor Peter Kafka and The editor-in-chief of The Verge Nilay Patel discusses Apple's plan for broadcast, news and more.

You can listen to the discussion in its entirety at The Vergecast at this time. Below is a slightly edited excerpt from this interview about Apple's potential plans for television broadcasting.

Peter Kafka: So, there's a product called Apple TV application that also works in its box, but it's also on your phone and it's essentially a television guide. Which, by the way, seems like a good idea, if you look at a world where the package has been broken or there are many different places to get videos. It would be great to have a place that has them all. Who controls that property? That is a big expensive question. But as a user, that makes sense to me. I would like to know where all my things are and what I can see. That's what Apple has tried to build. There is also a showcase component. A big part of Apple's video strategy here is getting you to subscribe to HBO or Showtime or Starz or CBS. And for Apple to take a cut of that subscription. I think that is more important to them than any other subscription service that we will finally see.

Then there's this other thing, I do not know what it's called. Apple TV Plus? This is what we still do not know what it is, but it's going to have some TV shows and maybe some movies, and people like J.J. Abrams and Steven Spielberg and Jennifer Aniston and Reese Witherspoon and Oprah Winfrey are involved in some way.

So they'll have things you can see, and you can or can not afford them. They are describing it as a subscription service. I do not think you're really going to get real money for it, I think it's going to be packaged somehow. I do not think they can charge you if they do it for being so small, because compared to what you get from Netflix or HBO or Disney Plus, maybe 30 shows. A couple shows a month. I do not think you can charge people for that. So that's what they are.

The TV box obviously existed and the strategy of the TV guide has existed for a couple of years.

Nilay Patel: What was it you wanted to do?

They wanted to build their own package of TV channels and sell them to you, which is now something that many people like Google, Hulu, Sling, Sony and AT & T are doing in various ways. Apple wanted its own form of this, they wanted a specific set of channels and a specific price, but they could never get it.

That's really a thing I do not understand. Why would not they just pay the money and get what they wanted? It seems that everyone else can get the same basic treatment.

Apple will tell you that they wanted a specific agreement. They wanted it to be $ 25 or $ 30 and basically wanted to get the sports out of the package. So this really comes down to Disney, which owns ESPN. ESPN is one of the keys for Disney in the package, and Disney, for years and years and years, has resisted separating ESPN from the rest of its stuff. And for what seemed to be the main point of friction. Some of the other networks, I am told, had already logged into Apple, but have not yet made a thinner package.

If you look at the other packages that everyone else is selling, they all reproduce practically what you would normally get through Comcast or Charter. You pay $ 40 or $ 50 per month. You get so many channels, it looks like the same thing.

Therefore, Apple could not launch this type of channel transmission thing above the cap. It did not happen for them. So they said, "Well, we're going to spend a billion dollars on Oprah, Steven Spielberg and Jennifer Aniston, and we'll do 30 programs that will be like a sweetener" and then launch this new TV application and Real Money will come from subscriptions to Showtime

That's what I think, yes. When and if they finally announce prices, I think it will be clear. Everyone wants to describe this in abbreviated form as a Netflix killer, but again Netflix is ​​$ 10 to $ 20 depending on what you're getting, and you get our Triple Frontier Friends in addition to the new shows that Netflix is ​​doing.

Plus a lot of old stuff, either Friends or old movies or old TV shows. And that's why even if you do not like Triple Frontier that it's a pretty mediocre but entertaining movie, it does not matter because there are a lot of other things there and you feel you're getting $ 10 Value.

People live their entire lives on Netflix.

And you do not even have to love everything you're seeing, it's just there. It's like television. It's like going through the cable channels.

That's why Netflix will not unbundle its content from its interface.

Right. They have the package, basically they have made a package for you. It's just a channel, it's a small box. So that works very well for Netflix and it's hard to imagine anyone saying that I'll pay as much as I pay for Netflix or Hulu or any of the other competitive services for a Jennifer Aniston show. Even if that show is great. Then you just bought the individual show. It is difficult to imagine that they come out with a convincing service that competes with them, that's why I think they're going to throw it to iPhone owners, to people who buy a bigger package of things. You can imagine what else could go in an Apple package.

It seems that the next package is "Start paying us monthly for an iPhone, we will give you a new iPhone every 18 months". They will only increase that price a bit, you will get the suite of services on your iPhone and there will be a Jennifer Anniston show.

Right. They have news, they have music. They will have something with the video. There is a game service. I pay monthly for the storage of iCloud and I did not want to do it, but in the end they did it to me. I'm sure I'm paying for AppleCare. So you can see how they can mix and match those packages. And maybe it gets interesting and somewhere there, there's a video thing that you're just paying for. And then keep approximately 30 percent of your monthly subscription to Showtime, it could be a lot of money for them.

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