Apple SVOD rumours accelerate with talk of global 2019 launch
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Michelle Clancy
| 27 October 2018

Apple is planning to launch its streaming service in more than 100 countries, according to reports.

The Information, citing three unnamed people “familiar with the company’s plans,” reiterated the ongoing rumours that Apple is poised to finally get into the SVOD game, with a service built to compete with Amazon Prime and Netflix.

The report said that the app would be launched first in the United States, during the first half of 2019, ahead of a global expansion.

That reporting dovetails with a report in October that said that Apple plans to give owners of its devices access to free original content, as part of the next chapter in its digital TV strategy.

According to sources speaking to CNBC, iPhone, iPad and Apple TV owners will have a pre-installed TV application which will offer a mix of free original content and subscription-based third-party channels. The latter is said to be online-only direct-to-consumer services, such as those from HBO and Starz. The former will be anchored by PG-13 tentpole franchises, which Apple hopes will launch it into the same realm as Amazon Prime and Hulu.

The report also said that the revamp of the service will go live early next year.

These are the latest rumbling about Apple’s OTT plans. In May, Bloomberg reported that Apple plans to begin selling subscriptions to online video services via its TV app. While the existing app allows users to watch various streaming services via its TV portal, users must sign up with each OTT service individually, such as ABC, Amazon, NBA League Pass and HBO, among others. The reported new scheme would allow consumers to instead sign up and watch through one Apple TV interface, sources told Bloomberg.

Apple would become the middle-man, in other words – a boon for its services business, which it said should generate $50 billion per year in revenue by 2021. With iPhone and Mac sales flattening out, services are where many investors expect the company to sustain its momentum. Sales from services climbed 31% in the most recent quarter, reaching a record $9.2 billion.

The plan also could allow the Apple TV box gain market share against rivals Roku, Google Chromecast and Amazon Fire TV.

For now, Apple’s current line-up of original content is available to viewers who possess Apple Music subscriptions for $9.99 per month. It’s been beefing up its stable over the past year, with offerings such as Carpool Karaoke and Planet of the Apps, available through Apple Music. In addition, the company has signed a deal with Oprah Winfrey to develop new shows and ordered a reboot of Amazing Stories, a new series from La La Land director Damien Chazelle, a thriller series from M. Night Shyamalan and morning show with Reese Witherspoon and Jennifer Aniston.

Apple plans to spend about USD 1 billion on original productions in 2018, according to what sources familiar with the matter told The Wall Street Journal last year.