(MENAFN - Baystreet.ca) Another shot has been fired in the streaming wars.
Apple Inc. (NASDAQ:AAPL) has announced that its new TV+ original video subscription service will launch on November 1 of this year and cost $4.99 U.S. ($5.99 in Canada) a month, undercutting the price of rival streaming services such as Netflix, Hulu and Disney.
The Cupertino, California-based technology giant made the announcement at a Tuesday event focused on new versions of the iPhone and Apple Watch. Moreover, Apple's new streaming service will be free for one year with the purchases of any new Apple devices.
The TV+ service is entering a crowded field that already includes Netflix, Amazon.com Inc., Hulu and AT&T Inc.'s HBO. In November, Walt Disney Co. will also launch its Disney+ streaming service, with a giant catalog of popular Marvel superhero and Star Wars titles, for $6.99 U.S. a month. Netflix's entry-level subscription is currently $8.99 U.S. a month in the U.S.
Netflix and Disney shares fell after the announcement on Tuesday, while Apple stock rose.
Apple is pushing into services to generate extra revenue from its large base of iPhone, iPad, Mac and Apple Watch users. Consumers have been slower to replace hardware such as smart phone due to higher prices and a lack of new features.
Apple's TV+ service, first previewed in March, will lack a large back catalog and instead focus on original movies and TV shows. Still, some analysts have suggested Apple TV+ could top 100 million subscribers in the next half-decade, which would make it a major challenger to Netflix and Amazon.
Apple TV+ will launch with a slew of titles and be available in the TV app that is pre-installed on iPhones, iPads, iPod touches, Apple TVs, and Macs. It will integrate with the Apple TV Channels service, which lets users subscribe to other providers such as HBO and Showtime.