Netflix will not support Apple's new TV service. Analysts are also skeptical

We are less than a week away from this year's spring Apple Keynote. Among other things, the company should present its eagerly awaited streaming service on it. We will learn the related details with finality only during the conference, but we already have some information about the content clear. However, there is no excessive enthusiasm in connection with the upcoming service, and analysts are rather skeptical.

According to analyst Rod Hall, even in the best-case scenario, Apple's streaming service will probably only have a small number of subscribers, and the service will not generate any significant profit for the company. For example, if 2020 million subscribers were added in 20, at $15 a month, the service would increase Apple's profit by just one percent.

In theory, there could be an argument in favor of the service that it will make users even more tied to their iOS devices, but Rod Hall argues that this tie will have only a negligible effect on Apple's bottom line. According to him, the added value that the service will bring from the consumer's point of view is key. While, for example, Amazon is talking about free shipping, for the upcoming streaming service, this value is unclear, according to Hall.

The planned changes also include improvements to Apple's TV app, which allows users to access third-party app subscriptions such as HBO or Netflix.

It was Netflix that, meanwhile, announced that its service would no longer be part of the next update to Apple's TV app. The statement came from Netflix CEO Reed Hastings, who said that Apple is a huge company, but Netflix wants people to watch its shows on its own app.

But this announcement is not so surprising - Netflix has long resisted the TV app and recently also stopped supporting in-app payments for new users. The reason was dissatisfaction with the commission charged by Apple. Netflix isn't the only one unhappy with the system — it has recently come out publicly against commissions fenced and Spotify.

Source: 9to5Mac