Apple to Reduce Profit Margins in Apple TV Streaming -


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Monday, 21 November 2016

Apple to Reduce Profit Margins in Apple TV Streaming

Like any reputable multinational, Apple knows that one of the secrets of success is the diversification of business areas. Therefore, even though its sales figures for iPhone 7 are impressive , the Cupertino do not neglect their other gadgets for the future: the Apple TV. And it 's not about the device itself, but video services and streaming TV channels, one of its key features.

If Apple wants to position your Apple TV on top of the market for smart TV Box, apart from providing a good product - which no doubt will - at an affordable price for the sector should optimize your business income to increase subscriptions and content while content providers. And so it plans to do so, reducing its profit margin to half, that is, from the current 30% to 15%. Thus, in the App store we are cheaper content and applications that appeal more to potential buyers. Also, for registered with more than one year of age also important discounts are offered.

During the last Keynote of October 27 Apple introduced a new TV application that will benefit from the presumed downgrade. Interestingly, Netflix did not show much interest in the application, not HBO - that soon lands in Spain - and Hulu.

The boom of TV on demand is proving very beneficial for channels like Netflix, which are betting on the creation of quality content combined with successful and original advertising campaigns. Therefore, this reduction is an extremely smart maneuver boys apple, which should make friends with Netflix, the more successful the channel, worldwide distribution and increased number of subscribers of the new television. And is that in the world of streaming television Apple is not yet the king and you have to give in if you want your goals come to fruition.

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