Apple (NASDAQ:AAPL) held a star-studded event on March 25 and announced a new streaming service; Apple TV. The service will house its original shows and movies and is intended to compete with other premier providers like Netflix (NASDAQ: NFLX), Amazon (NASDAQ:AMZN), and even conventional cable TV.
Apple, like Amazon, Facebook, and other tech giants which have entered the streaming game, has a boatload of cash to spend on content.
Some of the upcoming projects it teased were Steven Spielberg’s reboot of Amazing Stories and multiple programs from Oprah Winfrey. At first glance these appear to be fading stars of a previous generation. In any case, it looks like Apple is not afraid to fork over cash to bring in big names.
Apple is late to the game, and they are entering what has become a crowded field of streaming providers. Netflix has already cut out a dominant niche, and it will be difficult for new platforms to catch up. As far as original content is concerned, it will be very difficult to measure up to the wide and diverse offerings that Netflix delivers.
Disney (NYSE:DIS) is set to launch its own streaming service later this year, which will only intensify the competition. Its properties have dominated the cinema over the past decade, and it boasts a wealth of old content that will attract viewers. This, in my view, is the streaming platform to keep your eyes on going forward.
Apple is facing stiff competition in this arena, and its initial demonstration of content does not inspire faith that it will be able to measure up to Netflix anytime soon.
