By: Marzella Sigai
Apple is finally taking on Netflix with its own streaming television service and, uncharacteristically for the company, offering it at a bargain price – $5 a month beginning on Nov. 1.
Walt Disney Co. is launching its own assault on Netflix the same month, for just $7.
The aggressive pricing is unusual for Apple, which typically charges a premium for products and services to burnish its brand. Most analysts expected Apple to charge $8 to $10 per month for the service, which will be called Apple TV Plus.
Apple CEO Tim Cook did not have much new to say about the TV service beyond its pricing and debut date.
Netflix declined to comment. In the past, Netflix CEO Reed Hastings has depicted the increased competition as a positive for everyone, allowing consumers to create their own entertainment bundles instead of accepting bundles put together at higher prices by cable and satellite TV services.
The Apple streaming service will, at least for now, offer fewer viewing options than Netflix or Disney but also at a significantly lower price.
Hoping to propel its streaming service to a fast start while also boosting iPhone sales, Apple will give a year of free TV access to anyone who buys an iPhone, iPad, iPod Touch or Mac.
Credit: AP News