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A24 TECHNOLOGY
Thursday 12 sepTember 2019
Apple takes on Netflix with a $5-a-month streaming service

By MICHAEL LIEDTKE in which it suffered its first
AP Technology Writer quarterly drop in U.S. sub-
CUPERTINO, Calif. (AP) — scribers since 2011. Apple’s
Apple is finally taking on pricing tactics caught in-
Netflix with its own stream- vestors’ attention. Netflix’s
ing television service and, stock fell 2% on Tuesday.
uncharacteristically for the Each new entry into the
company, offering it at a crowded video subscrip-
bargain price — $5 a month tion market stretches the
beginning on Nov. 1. limits of just how many
Walt Disney Co. is launch- monthly plans viewers are
ing its own assault on Netflix willing to pay for.
the same month, for just $7. The Apple streaming ser-
It may be sheer coinci- vice will, at least for now,
dence that the cost of pay- offer fewer viewing options
ing for both Apple and Dis- than Netflix or Disney but
ney subscriptions will still be also at a significantly lower
a dollar less than Netflix’s price.
main plan, priced at $13 Apple’s pricing shows it is
a month. But the intent to serious, and the company
disrupt Netflix’s huge lead will probably take a loss “as
in the streaming business it plays catch-up,” said Co-
couldn’t be clearer. lin Gillis, director of research
Apple delivered the news Apple CEO Tim Cook announces new products at an event Tuesday, Sept. 10, 2019, in Cupertino, at Chatham Road Partners.
Tuesday while also unveil- Calif. Hoping to propel its stream-
ing three new iPhones that Associated Press ing service to a fast start
won’t look much different they’re going to do some- Like Netflix and similar ser- new videogame subscrip- while also boosting iPhone
than last year’s models thing, considering how vices from Amazon and tion service that will cost sales, Apple will give a year
other than boasting an ad- hyper competitive the Hulu, Apple has been $5 a month when it rolls out of free TV access to any-
ditional camera for taking streaming video space is,” spending billions of dollars Sept. 19. one who buys an iPhone,
pictures from extra-wide said Tim Hanlon, CEO of for original programs. The Called Apple Arcade, the iPad, iPod Touch or Mac.
angles. Vertere Group. most anticipated so far service will allow subscrib- The new iPhones were ac-
The aggressive pricing is Apple CEO Tim Cook did seems to be “The Morning ers to play more than 100 companied by an unex-
unusual for Apple, which not have much new to say Show,” a comedy starring games selected by Apple pected price cut for the
typically charges a pre- about the TV service be- Jennifer Aniston, Reese that are exclusive to the cheapest model, which un-
mium for products and ser- yond its pricing and debut Witherspoon and Steve service. derscored the company’s
vices to burnish its brand. date, although he did show Carrell. The service will Disney, one of the most hal- efforts to counteract the
Most analysts expected a trailer for a new Jason launch with nine original lowed brands in entertain- deepest slump in sales for
Apple to charge $8 to $10 Momoa-led series called shows and films, with more ment, is also muscling its its flagship product since
per month for the service, “See.” expected each month. It way into the market with a the phone was unveiled 12
which will be called Apple Netflix declined to com- will only carry Apple’s origi- streaming service featuring years ago.
TV Plus. ment. In the past, Netflix nal programming and will its treasured vault of films IPhone shipments are down
But Apple is entering a mar- CEO Reed Hastings has be available in 100 coun- and original programming. 25% so far this year, accord-
ket that Netflix practically depicted the increased tries at launch. That means both Apple ing to the research firm IDC,
created in 2007 — around competition as a positive Since it began focusing on and Disney will be under- putting pressure on Apple
the same time as the first for everyone, allowing con- exclusive shows and mov- cutting the industry lead- to generate revenue from
iPhone came out. And sumers to create their own ies six years ago, Netflix has ers. Besides Netflix, there is services such as music, vid-
Netflix has amassed more entertainment bundles in- built a huge library of origi- Amazon at $9 per month eo streaming, games and
than 150 million subscribers, stead of accepting bun- nal programming and now and Hulu at $6 per month. its App Store. Revenue from
meaning that Apple need- dles put together at higher spends upward of $10 bil- The price war is unfolding services rose 14% to nearly
ed to make a splash. prices by cable and satel- lion annually on its lineup. as Netflix tries to bounce $23 billion during the first
“You have to expect lite TV services. Apple also announced a back from a rough spring half of this year.q

Senator proposes help for workers

replaced by automation

By JOHN SEEWER retrain workers and pay them severance
TOLEDO, Ohio (AP) — Democrat Sherrod when their jobs are eliminated by new
Brown is pushing his party’s 2020 hopefuls technology.
to talk more about “pro-worker” issues, Brown has spent the last few weeks tout-
saying it’s a sure way to beat President ing the plan, but he said there’s little
Donald Trump next year. chance of getting it through the Repub-
The U.S. senator from Ohio, who earlier lican-controlled Senate and the Trump
this year decided against a White House administration.
run, is trying to kickstart the conversation What he wants is to get people talking
with a proposal that would force com- about how workers are being treated in
In this March 3, 2019 file photo, Sen. Sherrod Brown, D-Ohio, panies to help workers whose jobs are a fast-evolving economy with the hope
speaks to reporters during the Martin Luther and Coretta Scott replaced by automation. of turning his idea into law if Democrats
King Unity Breakfast in Selma, Ala. The legislation, which Brown plans to in- take control in Washington in next year’s
Associated Press troduce this week, calls for employers to election.q