People who know me know I am a big fan of Apple (Computer... I always want to add the “Computer” part because that’s how I referred to the company throughout my childhood and early adult years).
Apple’s products have been incredibly important to Bridget and me in our business the past 23 years. We have a professional and personal love for the hardware and software the company creates.
When it comes to the world tech hardware, sales ebb and flow depending on current trends and consumer habits.
At this moment in history, Silicon Valley has settled into a groove of subtle enhancements and updates designed to make the experience better.
Smartphones, tablets, and personal computers continue to mature, but there isn’t anything on the immediate horizon signaling a seismic shift in the industry.
I love my Apple Watch — and find it an indispensable part of my daily routine — but “wearables” haven’t proven to be “disruptive” in the manner that the personal computer was in the early 1980s, the iPod was in the early 2000s, and smartphones have been since 2009.
As a result, companies like Apple have to find a way to create steady and predictable streams of income from services — offerings that are able to hook a customer into an eco-system for the long term.
Apple has “dabbled” in this territory with offerings like Apple Music. Despite a high-profile launch, that service hasn’t been able to squash competitors like Spotify in the tune-centric subscription marketplace.
On March 25, Apple held a special event at the Steve Jobs Theater announcing four new services it hopes will reverse the foibles of Apple Music and appeal to mass consumers — Apple News+, Apple Arcade, Apple Card, and Apple TV+.
Let me briefly touch on each of these...
Apple News+ is an enhanced version of the company’s Apple News application that offers access to ~300 digital magazines (with enhancements like animated covers) and newspapers like “The Wall Street Journal” and the “Los Angeles Times.” The cost is $9.99 per month.
Apple Arcade is a subscription gaming service featuring 100+ new video games that subscribers can play as many times as they’d like. No pricing was available for the service, which launches this fall.
Apple Card is a new credit card offering from Apple, giving those who sign up a new card in the company’s Apple Pay service on iOS, as well as a physical credit card (MasterCard) made of titanium — with no numbers printed on it. (It uses a virtual card number in the Wallet app and autofills for you when you make orders in the Safari web browser.) Goldman Sachs partnered with Apple on the offering. The “fine print” on the Apple website says the interest rate will be between 13.24% and 24.24%.
Apple TV+ is a new streaming service the company touts as being a place “where the most creative minds in TV and film tell the kinds of stories only they can.” Details were scant on this service, which arrives in fall (no pricing details available). The stars and creators of some of the series — like Jason Mamoa, Steven Spielberg, Oprah, Jennifer Aniston, Steve Carell, Reese Witherspoon, and J.J. Abrams — appeared on stage to talk about the shows, but there was no accompanying “sizzle reel” for each program … only this trailer with brief snippets of each show:
The question is whether or not these services will be compelling for consumers.
On cursory glance, the credit card deal (which I have no interest in) looks to be the most compelling offering. If Apple can hook its loyal customer base tightly into financial services, Apple Card could be a winner for the company.
Apple News+ looks pretty, but feels like a service that should have been available seven years ago, when iPads were still relatively fresh in the marketplace. The reality is that “free news” — created by influencers (with sponsored and ad-supported content) — is where the entire news industry is headed the next decade.
(The Apple News+ segment felt awkward when Apple CEO Tim Cook talked about how much he loved the experience of perusing magazines at a newsstand — it made the company feel behind the times).
I’m not much of a gamer, so the Apple Arcade service isn’t really my cup of tea. In my mind, the biggest question is whether the games offered will be compelling enough for consumers to ditch free games in favor of a paid service (which might not offer A-list games from A-list developers).
Apple TV+ is the service that I’ve been waiting for with baited breath. Every report or rumor out there was relatively vague, and generally left me asking myself, “Why doesn’t Apple just buy Netflix?”
Other than the new shows teased — and an ability to subscribe to “channels” like HBO and CBS All Access within the revamped Apple TV app — Apple offered no other details on its television ambitions.
People who read this blog know I’m a “cord cutter” and that Bridget and I currently subscribe to a half-dozen streaming offerings in place of cable TV.
By and large, we’re pretty content with those services — and the local HD programming we receive via over-the-air antenna.
For Apple (or Disney with its upcoming service) to get our subscription dollars, the service is going to have to strike the right balance between price and value.
I question whether or not Apple is two years too late to the TV subscription game.
That sentiment largely hinges on whether or not the programming Apple teased is so good it makes a subscription “mandatory.”
We haven’t seen enough to know for sure. With the glut of “original programming” being doled out to a binge-happy public, the original shows Apple produces will have to stand out.
We also don’t know if Apple TV+ will offer “licensed” movies and TV shows like Amazon Prime, Netflix, and Hulu do alongside their originals.
I’ll be fascinated to see what sort of “content creator” Apple ultimately becomes. There is little doubt the content will be picked over with a fine-toothed comb when it is finally unveiled.
More than anything, the March 25th event at Apple left me scratching my head. At times, it felt awkward watching the company try to shift its way into subscription services.
With so few details on the services, it is hard to ascertain whether any of this makes sense for Apple — or will ultimately provide a financial boon.
I couldn’t help but think that the late Steve Jobs would have been able to work his voodoo-like skills to make something seemingly magically happen with subscription services.
Apple isn’t typically the “first” in any arena it serves, but typically finds a way to do things “better.”
In many respects, it all circles back to Apple’s “Think Different” ad campaign (developed by the brilliant ad agency TBWA\Chiat\Day). Many of you will remember the initial ad in the campaign featuring black-and-white imagery of history’s greatest creative minds set to narration by actor Richard Dreyfus.
In stark constrast was this five-and-a-half minute “storytellers” video introducing the Apple TV+ service:
While the video tries to give viewers “the feels” as they watch, it’s been 15+ years since featured artists like Steven Spielberg, Ron Howard, M. Night Shyamalan, and Sofia Coppola made anything groundbreaking in the cultural zeitgeist.
As an unabashed Apple fanboy, I hope these shows are truly engaging.
We’ll find out if one of technology’s most innovative companies can become one of the world’s most innovative subscription service companies.
At this point, I’m wary. I look at innovative companies like Tesla (led by the oddly brilliant Elon Musk) and I ask myself if Apple has the vision in place to carry itself forward.
I hope so. Otherwise, the company might need to think different...
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