Apple ( AAPL) reportedly plans to hold a high-profile media event replete with Hollywood stars to launch its long-awaited streaming video service. News reports say Apple is looking to hold the event March 25 at its Cupertino, Calif., headquarters.
Apple has invited actresses Jennifer Aniston, Reese Witherspoon and Jennifer Garner, as well as director J.J. Abrams, to attend the event because they're making TV shows for the new service, Bloomberg reported Wednesday. The new service would compete with Netflix ( NFLX ) and Amazon ( AMZN ) Prime Video, among others, the report said.
Also, Apple will use the event to tout a new subscription news service, Bloomberg said.
The video and news offerings are part of Apple's initiative to increase services revenue from its huge base of Apple device users. Apple has an active installed base of 1.4 billion users worldwide across iPhone, iPad, Mac and other devices.
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Apple Streaming Video Business Model Debated
While Bloomberg says Apple will offer its original video programming as part of a paid subscription service, CNBC said Apple is going to offer the content for free to users of Apple's TV app. Apple also will push a platform for existing subscription services where it takes a 30% share of revenue from new customers, CNBC said Wednesday.
CBS ( CBS ), Lions Gate Entertainment ( LGFA ) and
Viacom ( VIAB ) are expected to offer subscription streaming services on the Apple platform, CNBC said. Services not expected to participate in the "channels" platform include Netflix, Hulu and HBO, it reported.
Apple's original content and the paid services will be accessible through Apple's TV app. By housing video content in one app, users won't have to open separate apps for different video services.
Apple has been spending heavily on original television shows. It has signed production deals with director Steven Spielberg, media mogul Oprah Winfrey and "Sesame Street" creator Sesame Workshop. Apple also has hired "Battlestar Galactica" producer Ronald Moore, "La La Land" director Damien Chazelle and "Glass" director M. Night Shyamalan to make original shows.
On April 11, Walt Disney ( DIS ) is scheduled to detail its upcoming Disney+ streaming video service. The subscription service will include original movies and TV shows from Marvel, Pixar, Lucasfilm and other brands.
Apple Subscription News Service Faces Pushback
Apple will integrate its upcoming premium news service into its News app. Billed as "Netflix for news," it will offer subscribers access to unlimited articles from a collection of news sources for a monthly fee.
The Wall Street Journal reported Tuesday that major publishers were balking at Apple's proposal to take 50% of the revenue from the service.
The New York Times and the Washington Post are among the outlets that have refused to license their content to the service because of the proposed financial terms, the Journal said.
Apple stock rose 0.4% to close at 170.80 on the stock market today .
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