Defensive moves

Apple’s media push

Apple’s media push is very interesting – not the products, but their execution. Why is Apple doing this? Nothing screamed category-defining product, more like a me-too. Apple Music is the same.

It is clear Apple’s goal is to further vertically integrate with media. Besides from a couple of extra news subscriptions, they were already getting the 30% take on most media. Right?

The other puzzling thing was the super odd timing. It almost felt like a vaporware presentation. Definitely not something you’d expect from Apple. Introduction the fall, no pricing and limited view of content. Why would they do that?

First, I think, Apple is scared of more companies doing a Netflix-move to them. The first one has done it and it is only a matter of time the rest will follow. The rest was just watching to see what Apple was going to do. Apple had to act now and they did. By moving up vertically into the ecosystem, Apple gains more control. Apple is going to put themselves into a position from where they can directly control the revenue streams of media companies. If you do not play by Apple’s rules, they’ll remove you or downgrade your listings. It’s a play right out of the Amazon playbook.

Second, they announced early so they can do a rolling thunder of announcements between now and the fall. I think Apple figured that there was too much content to announce in a single event. By announcing it early, they can take advantage of a summer of Apple stories on new content to tease the audience. This event was just meant to kick that off.

I like they are taking charge. I am sure Apple’s media push will be a success given its worldwide scale.

Also, read Ben Thompson’s take on Apple’s services event.

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