Companies want a continuous flow of money at all times and not be dependent only when consumers make big investments in new phones or other hardware.
Apple is now jumping on to the online streaming platform, they will intensify the already packed space and will now take on Netflix by launching a subscription TV service with its own original shows. This is very similar to what Facebook is doing – it is allowing users to buy products using Instagram, thus encroaching on Amazon’s territory.
What it does prove is that tech companies want to expand their service, and in doing so, they are encroaching into their different territories.
As far as Apple is concerned, the company is also launching a gaming service and introducing its own credit card, and could be well outside its comfort zone, according to technology industry analyst Rob Enderle.
“This is an awful lot of breadth really quickly for a company that hasn’t been known for being great at breadth,” Enderle said. “This is much more diversity than Apple’s ever had.”
These are indeed tricky times and Apple has faced a slump owing to the significant decline in the sale of iPhones, and hence, they are looking elsewhere to get a footing to compensate for these losses.
“They have kind of bled the device market dry,” said Sally Edgar, of UK-based technology consultancy Waterstons. “Companies will increasingly be about subscription services. I think they have to do it to survive.”
Facebook and Google have long scrapped over digital ads, although now both companies have hit a dead wall and are now looking around for alternatives. Facebook CEO has already circulated a memo which he is planning to unify the underlying messaging infrastructure of its WhatsApp, Instagram and Facebook Messenger services and incorporate end-to-end encryption to these apps.
Reflecting on this new trend, tech industry analyst Tim Bajarin said that this new urgency was more because companies want a continuous flow of money at all times and not be dependent only when consumers make big investments in new phones or other hardware. Online streaming is one big opportunity which a company like Apple wants to lap up.