Can Apple Overcome Netflix's Big Advantage While Searching for Alternative Income, Asks Digital Analyst

Portland SEO's Augusto Beato says Apple's venture in the streaming service will test whether its deep pockets can overcome Netflix's big advantage in terms of know-how in creating and distributing content.

He noted that Apple TV Plus, which will house its original shows and movies, is doing a big gamble entering this field of business at a very late stage with Netflix already perched at the top and with other well-funded rivals giving it a run for its money.

Apple TV app will also infuse traditional cable subscriptions with its different streaming services.

"If Apple is changing battlefields and go up against an established global player in the field just to look for an alternative source of income from it's iPhone, then it better be ready for a long-drawn-out war," said Beato, who may be reached at Portland SEO through this link. "Apple has a lot of money to spend and 900 million active iPhones, but the big advantage still belongs to Netflix, which already has 139 million subscribers worldwide, with Amazon and Hulu also in the fray."

Sales for the iPhone has started to decline, and Apple has put its attention on digital subscriptions for new growth.

Apple's stock fell $2.31 to $188.74 on Monday, while Netflix's rose $5.22 to $366.23.

Apple has about $245 billion in cash and assets, and it's putting its financial clout to work, signing stars such as Steven Spielberg, Ron Howard, and Sofia Coppola and longtime Sony television executives, Jamie Erlicht and Zack Van Amburg.

The new Apple service will be featuring Oprah Winfrey-created documentaries; TV morning talk shows, starring Jennifer Aniston, Steve Carell, and Reese Witherspoon and Steve Carell; and a Spielberg sci-fi show entitled "Amazing Stories."

It will have the Apple News Plus, a news service that costs $10 a month and includes around 300 magazines plus major newspapers such as the Los Angeles Times and The Wall Street Journal. Apple claims that advertisers won't be able to track readers inside the app, unlike Facebook, Google, and other online news sites.