On Monday, Apple took the wraps off its new streaming service, Apple TV+, and one of its most notable features is the price: some shows will be available for just 99 cents an episode. This would be a major departure from the current model, where most streaming services charge a monthly subscription fee ($15.99 for Amazon Prime Video, $12.99 for HBO Max, and so on).
But is Apple’s 99-cent pricing model really a game changer? The answer: not really.
Why It’s Not a Game Changer
There are a few reasons why Apple’s 99-cent pricing model isn’t a game changer.
* It’s not a new concept. Several streaming services already offer 99-cent episodes, including Amazon Prime Video and YouTube TV.
* It’s not a broad enough offering. Apple TV+ will only be offering a handful of 99-cent episodes, and they will be limited to older and less popular shows.
* It’s not a sustainable model. Apple will likely lose money on these 99-cent episodes, and it will have to make it up somewhere else. That could mean higher prices for other content, or less original programming.
The Bottom Line
Apple’s 99-cent TV show idea is a nice gesture, but it’s not a game changer. It’s not a new concept, it’s not a broad enough offering, and it’s not a sustainable model. Consumers are likely to be better off sticking with their existing streaming services.
Here are some additional reasons why Apple’s 99-cent pricing model is not a game changer:
* It’s not clear how Apple will make money from this. Apple is already losing billions of dollars on its hardware business, and it needs to find new ways to generate revenue. The 99-cent pricing model is unlikely to be a major money-maker for the company.
* It could actually hurt Apple’s reputation. If consumers get used to paying just 99 cents for TV shows, they may be less willing to pay full price for other content. This could lead to a decline in Apple’s overall revenue.
* It’s not a sign that Apple is serious about taking on Netflix. Netflix is the current streaming leader, and it has a massive library of content. Apple TV+ is a small player in comparison, and it’s unlikely to make a dent in Netflix’s market share.
