Apple enters the streaming wars with Apple TV+

Yolanda Curtis
August 8, 2019

The good: The price, $10 per month, looks like a good deal compared to separate subscriptions for newspapers and magazines (Apple will include more than 300 of the latter, including The New Yorker and Sports Illustrated). Indeed, like Stadia, Apple Arcade subscribers can start playing a game on one device and instantly pick up where they left off on another Apple device.

Apple will start offering its new credit card to users in the USA in August, CEO Tim Cook announced at the company's third fiscal quarter earnings call on July 30. The latest Fed average for all credit card plans throughout 2018 was 14.22 percent, just about two points higher than Apple's lowest rate. For purchases made in stores and online that don't take Apple Pay, of which there are a lot, the rate is lower, at 1%. If customers miss a payment, they will not be charged a penalty rate.

However, it's doubtful the card will grow Apple Pay, in Robertson's view. Instead of having meaningless gibberish populating your purchase history, Apple uses machine learning and purchase location to figure out merchant name and lay it all out in an easy to read format.

"Apple customers will react very favorably, and it could even draw non-Apple customers over to the Apple platform", he added.

In addition, Daily Cash can be used to settle the balance or transferred to a bank account like ordinary cash.

The US partnership is a collaboration with Goldman Sachs and Mastercard, and it's probable that if it is successful the trio will then look at new opportunities elsewhere. "We're committed to supporting quality journalism, and with Apple News+, we want to celebrate the great work being done by magazines and news outlets", said Lauren Kern, editor-in-chief of Apple News. Users can pay the bills weekly rather than monthly to reduce the interest payment.

"Apple Card is created to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance", she added.

Apple Card is at the core of the company's business transformation.

"We also designed Apple Card to set a new level for privacy and security", Apple Vice President for Apple Pay Jennifer Bailey said at Monday's event.

Where and when is Apple Card available?

With the card service, Apple can further diversify its income streams by tapping the transaction fees arising from each transaction using the card.

Other credit cards have fees. Apple clearly wants to replicate that success in the United States.

Apple now aims to focus on digital content and services to free itself from its dependence on iPhone sales. It estimates that there will be 10bn Apple Pay transactions in 2019, with retailer acceptance now hitting 70% in the U.S. and 85% in the United Kingdom, and it's even higher elsewhere. In short, it's not just Netflix that Apple is competing against; ITV and BBC invested in BritBox last month, Snap Originals introduced TV-like programming on mobile and Disney+ will capitalise on a traditionally younger audience.

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