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Apple's rumored video streaming service won't include Netflix, report says

Published by Business Insider on Thu, 14 Feb 2019

Netflix will not participate in Apple's rumored video streaming service, according to a new report. HBO's inclusion is also unclear.Apple is aiming to launch its video offering in April or early May, as a previous report has also indicated.The news comes just a day after a report suggested that Apple is clashing with publishers over terms for the news subscription program it's allegedly working on.Apple is expected to announce its subscription news service at a March 25th event at The Steve Jobs Theater, but there's no word yet on whether the company has any plans to announce its video streaming service in the same presentation.Apple's long-rumored video streaming service will not include Netflix, according to a new report from CNBC. The report also indicates that HBO's participation is uncertain, as talks are said to have slowed.The service, which Apple is aiming to launch in April or early May, will function as a subscription platform that enables members to subscribe to existing digital streaming services and will include free original content from Apple. The iPhone company has reportedly struck over a dozen deals for original content from big names ranging from Steven Spielberg to Oprah Winfrey as it prepares the service, which is expected to be similar to Amazon's Prime Video offering.It's unclear why Apple's talks with HBO reportedly aren't moving along, but CNBC says that Apple has not offered HBO the same terms that Amazon has as part of its Prime Video program. Apple is said to be asking for a 30% revenue share for every customer that signs up for an over-the-top service through its platform. Apple did not immediately responded to Business Insider's request for comment.The news comes just a day after The Wall Street Journal reported that publishers are unhappy with the terms Apple is proposing for its rumored subscription news program, which it's expected to unveil at a March 25 event on its campus. Apple is reportedly pushing for a 50% revenue split with publishers on news subscriptions made through the program.As for which companies are on board with Apple's video service, networks such as CBS, Lion's Gate's Starz, and Viacom are expected to participate. The Information first reported in January that Apple was planning to debut its video offering in April.Services such as this rumored video streaming platform will be increasingly important for Apple as it combats slowing iPhone sales. In the letter to investors that Apple CEO Tim Cook published in January revising the company's guidance for its first fiscal quarter of 2019, Cook pointed to its services business as a key area of growth. Services generated over $10.8 billion in revenue during the December quarter, marking a new quarterly high. He also noted the company remains on track to double the size of its services business from 2016 to 2020, and services such as this rumored video streaming platform will likely play a crucial role in that.Join the conversation about this storyNOW WATCH: How Apple went from a $1 trillion company to losing over 20% of its share price
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