Apple has not canned its TV plans, and a new report says Apple is looking to ink deals for exclusive TV shows that would be streamed on iTunes, planning to possibly unveil the new product during the iPhone 7 media event in September.
Numerous reports have claimed that Apple is negotiating with networks in an effort to launch a cable subscription program that would take on Netflix and other streaming services, but the Cupertino-based company has not been successful so far.
Two people familiar with the matter told The Street that Apple is now working with TV producers and Hollywood studios in an effort to create TV shows for iTunes, but no agreements have been finalized. One plan is to have the deals in place so Apple can announce the exclusive content as part a cable-like offering in September when the iPhone 7 is unveiled, one person said.
Apple seems ready to follow in Netflix and Amazon’s footsteps, which also create their own original programming to lure in more subscribers. And it’s a recipe that has clearly been working.
At least one analyst is ready to bet big on Apple’s ability to sell more digital content to loyal customers in the future. “We have a metric that can explain and monetize the value of brand loyalty,” Jim Cramer wrote about Action Alerts Plus charitable portfolio, which includes Apple.
He continued, “[Apple] just didn’t explain it that way. I am talking about the slide in the Apple deck called ‘service revenue,’ which showed that installed base revenues — the ones we all pay for iTunes, music, the app store licensing, service parts, iCloud, and Apple Pay — are growing at an incredible 23% year over year, from $25 billion in fiscal 2014 to $31.2 billion in fiscal 2015. That’s the number that we need to key on, not unit devices.”