Apple’s Strategy Of Temptation

November 14, 2019
November 14, 2019 Kate Neale

Apple’s Strategy Of Temptation

Adam offered Eve an apple and an apple proved to0 tempting for Snow White. Now Apple is working on it’s own strategy of temptation through stealth.

As with any strategy, it’s best to have an over-arching vision of your destination as you plot the steps of your journey to get there. Apple’s bundled subscription service announced in the US today seems to take the view that ultimately it could be quite advantageous and therefore desirable, for consumers to have one central, convenient and familiar universe through which they can communicate and access their preferred content.

It makes perfect sense that as our worlds converge on our very smart phones, if you’re connected to ‘the mother ship’, as all Apple product users are, how good would it be (at some time in the future) to have one overarching subscription, one ubiquitous supplier as your source for your entertainment and communication? Perhaps Quibi and Apple are up with the play!

While Apple may have a range of subscription packages and pricing currently, a crucial element of product pricing can be timing. Now is not the time for them to discount, merge or purge their current subscription offerings, rather they need to pace themselves with the rate of change in the marketplace and adaptation by the consumer. Stealth requires endurance and resources, both of which Apple has plenty.

Each of the leading streaming platforms have their own ‘world eyeball domination strategy’, all striving at this time to achieve scale, as they consolidate relationship with viewers and advertisers:

  • Hulu wants to build scale based on the quality of UX in terms of delivery experience, and the quality and scope of content available (including Hulu Originals, Disney and ESPN)
  • Roku is building scale using scope of content via aggregation, viewer and advertiser synergy via data integration and growth of customer base via international expansion.
  • Netflix wants to be the place everyone in the home can find something to watch, from a wide range of original exclusive content from a wide range of content across all genres and cultures.
  • Quibi is mobile content focused which has distinctly different criteria as the easily interrupted mobile medium is more suited to short form content alternatives.
  • Amazon uses their streaming content as a value add, tying advertising to induce more sales on Amazon.
  • Apple can combine device, viewer/advertiser/content interface technology, original content creation and content distribution for anyone and everyone, ostensibly within one universe.

I discussed the merits of volume in terms of subscription pricing for streamed TV in my earlier post Number Crunching Content And Streaming Platforms,  and Apple’s long range strategy based on a ubiquitous universe makes perfect sense to me.

Apple News, Apple Music, Apple TV, Apple Arcade – iphone, iPad, iMac. If Apple can amalgamate access via their devices to a desired range of content, the sheer volume of viewers that an established global reach affords, could underpin significantly reduced monthly subscription rates. Satisfaction in access, content and price could deliver so many eyeballs, it could drive a most compelling value proposition for advertisers, and other content distributors and owners to have their content offered through Apple too.

If users could have one secured access point to watch/listen/play music, game or video content from Apple (or others), on an Apple device (access already preloaded when the device is purchased), pay their subscription on your Apple card (or on the device purchase plan) and enjoy a near seamless experience, how tempting would that be?

Product integration gives consumer convenience while a global presence provides scale, strong continuous revenue, customer service and an extremely competitive subscription price. A temptation delivered all in the fullness of time.

If you want to know more about what’s happening in the world of streaming content, contact Wanted Consulting – Reward Offered.

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