Apple set to reveal whether streaming speculation justified

Will expected service be a Netflix-killer?

It’s showtime for Apple.

Well, every day kind of is for the marketing-savvy Cupertino, Calif.-based tech giant. But this time, it’s even saying it out loud.

What exactly the show is, however, remains to be seen. Earlier this month, Apple invited reporters and tech analysts to an announcement scheduled for Monday. While there weren’t any details on what it’s announcing, it tipped its hand in the invite by showing a countdown, and the words “It’s showtime.” A wave of speculation (and the usual strategic leaks) suggested that it’s going to unveil either its long-awaited streaming service à la Netflix, a news and information service, or both.

Here’s a look at what some experts are saying Apple might be announcing, and what it could mean for Netflix, publishers, and consumers. A trickle or a stream? It might not be a Netflix-killer at first, but whatever Apple unveils Monday, it’s likely the start of a much bigger push, according to Wedbush Securities analyst Daniel Ives.

“We believe Monday’s announcement is just the tip of the iceberg for (Apple CEO Tim) Cook’s broader streaming content strategy,” Ives wrote in a research note ahead of the announcement.

Ives believes the new streaming service will launch this fall, with some pre-exist--

ing movies and shows, as well as some original content. He noted that Apple already has production deals lined up with the likes of Oprah Winfrey, Reese Witherspoon, Jennifer Aniston and some unknown by the name of Steven Spielberg, and that Apple is spending $1 billion (U.S.) on original con- tent this year. Why do it? Simply put, services are a far more lucrative business than building devices, no matter how high-end. And selling those services to consumers is easier when you’ve got a billion people who already have your other products in their hands.

“The more products that a user pays for (i.e., the bigger the bundle), the lower the churn owing to the higher consumer aggravation to replace the bundle’s component parts,” wrote Needham analyst Laura Martin. In other words, if you’ve already got an iPhone or an iPad, and use iTunes and iMessage, odds are you’d be inclined to go with a new streaming service if it fits in seamlessly with your other stuff. Big news? There has been plenty of speculation that Apple will also be launching a news subscription service Monday, aggregating subscriptions and content from newspapers, magazines, and other publishers and broadcasters. The only question is which content will be there. For some publishers, like the New York Times, being there wasn’t worth what Apple was asking — reportedly up to 50 per cent of any revenue, according to one report. Coming here? Given the sometimes-tangled mess of regional rights to shows and movies, it’s unlikely Apple would have the exact same streaming offering in Canada as it does in the U.S. (or any other country, for that matter). But Wedbush’s Ives thinks it will still be coming here in one form or another.

“We believe this will be available in Canada with some additional content catered for the country,” Ives said in an emailed reply to a question from the Star.