Apple to Release TV Service with $5 per Month

Apple TV Plus, the Netflix like subscription service featuring Apple's original TV shows and movies, was first announced at a star-studded event in March, but the company stayed mum about the crucial details until its iPhone event on Tuesday.

People who buy a new Apple gadget get to watch free for a year, while everyone else qualifies for a seven-day free trial.

Meanwhile, 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

The Apple streaming service will at least for now, offer fewer viewing options than Netflix or Disney but also at a significantly lower price.

Apple TV Plus will feature the ability to download originals to watch offline. Its nine launch titles include a drama starring Reese Witherspoon and Jennifer Aniston and a post-apocalyptic thriller starring Jason Momoa.

After launch, there are five other titles Apple has confirmed will be added in the following months. "Most" Apple TV Plus series will premiere with three episodes available immediately, followed by one new episode weekly, Apple said. Full seasons of some series will be available all at once.

On other hand, Colin Gillis the director of research at Chatham Road Partners reported that Apple’s pricing shows it is serious, and the company will probably take a loss as it plays catch-up.

Apple TV Plus

Also, Apple announced a new videogame subscription service that will cost $5 a month when it rolls out Sept. 19. Called Apple Arcade, the service will allow subscribers to play more than 100 games selected by Apple that are exclusive to the service.

Apple CEO Tim Cook, did not have much new to say about the TV service beyond its pricing and debut date, although he did show a trailer for a new Jason Momoa-led series called “See.”

Noteworthy, IPhone shipments are down 25% so far this year, according to the research firm IDC, putting pressure on Apple to generate revenue from services such as music, video streaming, games and its App Store. Revenue from services rose 14% to nearly $23 billion during the first half of this year.

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