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Entertainment
Apple takes on Netflix with a $5-a-month streaming service
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Apple takes on Netflix with a $5-a-month streaming service

Apple takes on Netflix with a $5-a-month streaming service
Photo Credit: AP Photo/Tony Avelar
Apple CEO Tim Cook announces new products at an event Tuesday, Sept. 10, 2019, in Cupertino, Calif. (AP Photo/Tony Avelar)

Apple takes on Netflix with a $5-a-month streaming service

Apple is finally taking on Netflix with its own streaming television service and, uncharacteristically for the company, offering it at a bargain price — $5 a month beginning on Nov. 1.

Walt Disney Co. is launching its own assault on Netflix the same month, for just $7.

It may be sheer coincidence that the cost of paying for both Apple and Disney subscriptions will still be a dollar less than Netflix's main plan, priced at $13 a month. But the intent to disrupt Netflix's huge lead in the streaming business couldn't be clearer.

Apple delivered the news Tuesday while also unveiling three new iPhones that won't look much different than last year's models other than boasting an additional camera for taking pictures from extra-wide angles.

The aggressive pricing is unusual for Apple, which typically charges a premium for products and services to burnish its brand. Most analysts expected Apple to charge $8 to $10 per month for the service, which will be called Apple TV Plus.

But Apple is entering a market that Netflix practically created in 2007 — around the same time as the first iPhone came out. And Netflix has amassed more than 150 million subscribers, meaning that Apple needed to make a splash.

"You have to expect they're going to do something, considering how hyper competitive the streaming video space is," said Tim Hanlon, CEO of Vertere Group.

Apple CEO Tim Cook did not have much new to say about the TV service beyond its pricing and debut date, although he did show a trailer for a new Jason Momoa-led series called "See."

Netflix declined to comment. In the past, Netflix CEO Reed Hastings has depicted the increased competition as a positive for everyone, allowing consumers to create their own entertainment bundles instead of accepting bundles put together at higher prices by cable and satellite TV services.

Like Netflix and similar services from Amazon and Hulu, Apple has been spending billions of dollars for original programs. The most anticipated so far seems to be "The Morning Show," a comedy starring Jennifer Aniston, Reese Witherspoon and Steve Carell. The service will launch with nine original shows and films, with more expected each month. It will only carry Apple's original programming and will be available in 100 countries at launch.

Since it began focusing on exclusive shows and movies six years ago, Netflix has built a huge library of original programming and now spends upward of $10 billion annually on its lineup.

Apple also announced a new videogame subscription service that will cost $5 a month when it rolls out Sept. 19. Called Apple Arcade, the service will allow subscribers to play more than 100 games selected by Apple that are exclusive to the service.

Disney, one of the most hallowed brands in entertainment, is also muscling its way into the market with a streaming service featuring its treasured vault of films and original programming.

That means both Apple and Disney will be undercutting the industry leaders. Besides Netflix, there is Amazon at $9 per month and Hulu at $6 per month.

The price war is unfolding as Netflix tries to bounce back from a rough spring in which it suffered its first quarterly drop in U.S. subscribers since 2011. Apple's pricing tactics caught investors' attention. Netflix's stock fell 2% on Tuesday.

Each new entry into the crowded video subscription market stretches the limits of just how many monthly plans viewers are willing to pay for.

The Apple streaming service will, at least for now, offer fewer viewing options than Netflix or Disney but also at a significantly lower price.

Apple's pricing shows it is serious, and the company will probably take a loss "as it plays catch-up," said Colin Gillis, director of research at Chatham Road Partners.

Hoping to propel its streaming service to a fast start while also boosting iPhone sales, Apple will give a year of free TV access to anyone who buys an iPhone, iPad, iPod Touch or Mac.

The new iPhones were accompanied by an unexpected price cut for the cheapest model, which underscored the company's efforts to counteract the deepest slump in sales for its flagship product since the phone was unveiled 12 years ago.

IPhone shipments are down 25% so far this year, according to the research firm IDC, putting pressure on Apple to generate revenue from services such as music, video streaming, games and its App Store. Revenue from services rose 14% to nearly $23 billion during the first half of this year.

Apple is cutting the price of the iPhone 11 to $700 from $750, the price of last year's XR. The lower prices reverse a trend in which premium phones get more expensive as people upgrade them less often.

The new phone models resemble last year's iPhone XR, XS and XS Max. And they have the same design — with more display space, less bezel and no home button — that Apple switched to with the iPhone X in 2017.

Unlike some of the other devices coming out this year, the new iPhones won't support upcoming ultrafast cellular networks known as 5G. Apple paid billions of dollars to settle a royalty dispute with chipmaker Qualcomm in April to gain the technology it needs for 5G iPhones, but those models will not be ready until next year.

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AP technology writers Mae Anderson in New York and Barbara Ortutay in San Francisco contributed to this story.

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This story has been corrected to fix spelling of the actor's last name. It's Steve Carell, not Carrell.

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The Latest Headlines You Need To Know

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Grateful beyond words that Rachel survived.” A GoFundMe page set up to help Rachel Lertzman in the wake of her family’s deaths had raised more than $122,000 as of Monday morning. >> Read more trending news According to police, dispatchers received a call around 9 a.m. Wednesday for shots fired and an assault with a deadly weapon at the Lertzman home in Northridge. Greg Demos, the neighbor from whom Rachel Lertzman sought help, told KTLA she ran over in her pajamas and said her father had tried to shoot her. She was “upset, confused distraught, somewhat in shock,” as she recounted what happened, Demos told the news station. “‘I don’t know what to tell you, Greg, but this is what just happened in my house, and I don’t know what to do,’” Demos recalled her telling him. “She said, ‘My dad took a shot at me, and my mom and my brother are still inside.’” Demos told ABC7 in Los Angeles that he and Rachel Lertzman ran back to the family’s home. “I went with her to the door and I knocked on the door, yelled. Nothing,” Demos told the news station. “We went to the back. She had locked the doors and left. She said my mom and my brother are still inside. We pummeled on the door, yelled for her dad, yelled her mother’s name and brother’s name. No answer. “And that's when we called the police.” Police officials said the investigation showed Eric Lertzman shot and killed his wife in their bedroom, then attempted to shoot his daughter in her bedroom across the hall. She locked herself in a bathroom for safety. Lertzman then went to his son, Michael, and killed him, authorities said. Watch ABC7's live coverage of the police response to the Lertzman home below. “During this time, (Rachel Lertzman) escaped through the bathroom window and ran to a neighbor’s residence,” the news release said. “Eric returned to the master bedroom, where he turned the weapon on himself, ending his own life.” According to the Los Angeles County Medical Examiner’s Office, Eric Lertzman died of a gunshot wound to the head. Both Michael and Sandra Lertzman died of multiple gunshot wounds. Their deaths were classified as homicides, while Eric Lertzman's death was labeled a suicide. Two handguns were found in the home, according to police. Feuer said on Twitter that Eric Lertzman had been with the city attorney’s office since 2005. “This is a horrible tragedy,” Feuer said in a statement. “As we search for answers to how this could happen, we mourn the victims and envelop those left behind with our love during this time of unbearable loss. Of course, we will provide members of our city attorney family with needed counseling and support.” Police officials said detectives were still searching for a motive, but “investigators believe the recent loss of a loved one and ongoing health issues played a significant role.” Eric Lertzman’s mother, Phyllis Lertzman, died Aug. 26, according to her obituary. NBC Los Angeles reported that Eric Lertzman had taken leave from work after undergoing a recent colon surgery. The attorney's health had deteriorated over the past year or so, neighbors said. “Just terrible it came to this, that he couldn’t reach out to us or other family members for help,” longtime family friend Russ Beck told the news station. Beck described Eric Lertzman as a “kind soul” who enjoyed riding dirt bikes until his health no longer allowed it. Lertzman’s Facebook page, which had little activity, shows him standing next to a motorcycle and wearing riding gear. Eric and Sandy Lertzman had been married for 33 years, according to social media posts. A post on Sandy Lertzman's Facebook page indicated they celebrated their anniversary Aug. 24, less than three weeks before the homicides. In a 2016 Facebook post, Sandy Lertzman described her husband as a “supreme” husband and father. “I love you forever and can’t wait to share at least the next 30 years with you,” she wrote. 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Aviva Eagle, who described herself as a cousin, said Sandy Lertzman was “always full of love and always smiling.” Eagle described Michael Lertzman, a student at California State University Northridge, as smart with his whole future ahead of him. Alan Dreiman, president of the university’s chapter of Jewish fraternity Alpha Epsilon Pi, wrote of the teen’s warmth. “Michael was a shining light in our lives, a wound that will never heal,” Dreiman wrote. “A huge thank you to everyone who has offered support. That is the only thing getting everyone through these terrible times. Our condolences are sent out to family, friends, and the community. 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We send our deepest condolences to his sister, Rachel (CIT '10), and the many people whose lives Mikey touched.” A woman named Erica Hartman responded that she had seen Michael Lertzman the Friday before he was killed. “He ALWAYS had a smile on his face and greeted everyone with nothing short of genuine happiness,” Hartman wrote. “We are devastated by this horrible news,” Julie Hertel wrote. “I know there are many current and former campers, my daughter included, that are heartbroken, shocked and numb to hear this news. “Campers should look to their camp family to help them through this difficult time. It helps to be with or talk with others that knew and loved Mikey. Share your stories and memories about him, this will bring comfort to you and your friends. My heart goes out to everyone impacted by this awful situation.”
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Washington Insider

  • Angered by stories over the weekend about possible sexual misconduct by Supreme Court Justice Brett Kavanaugh during his law school days at Yale University, one progressive Democrat in Congress is ready to introduce articles of impeachment against Kavanaugh - but there is no guarantee the issue would be acted upon by the House. 'I believe Christine Blasey Ford. I believe Deborah Ramirez,' Rep. Ayanna Pressley (D-MA) tweeted. 'It is our responsibility to collectively affirm the dignity and humanity of survivors.' But even as some Democrats in Congress call for more answers about the FBI investigation of complaints about Kavanaugh, the lawmaker in charge of the committee which would deal with an impeachment effort said Monday that it wasn't on his radar screen. Instead, Rep. Jerry Nadler (D-NY) told a New York radio show that his panel's various investigations of President Trump leave little time or oxygen to specifically go through allegations against Kavanaugh. “Even Jerry Nadler figured out that impeachment of Brett Kavanaugh, based on this ridiculous accusation, is a Bridge Too Far,” said Sen. Lindsey Graham (R-SC). But there were also Democrats in Congress who disagreed with Nadler, as they demanded a further investigation not only of Kavanaugh, but of the FBI background investigation of the Justice. 'Those who voted yes on his nomination betrayed the women of this country and we learn more of the depth of that betrayal with every new detail & allegation,' tweeted Rep. Carolyn Maloney (D-NY). Only one member of the Supreme Court has ever gone through impeachment proceedings, Justice Samuel Chase, who was accused of being too partisan to serve on the bench. While he was a Justice, Chase had campaigned in the 1800 election for John Adams, who lost that election to Thomas Jefferson. Looking for payback, the House approved articles of impeachment against Justice Chase for his partisan activities, but the Senate refused to convict. On the floor, Senate Majority Leader Mitch McConnell rebuffed talk of Kavanaugh's impeachment. 'This is not just a left-wing obsession with one man. It is part of a deliberate effort to attack judicial independence,' McConnell said in a Senate floor speech, as he said this was more than a case of 'sour grapes.' 'Six of the Democrat presidential candidates — plus one who has now quit to run for the Senate — have publicly flirted with packing the Supreme Court,' McConnell said. 'Court-packing. Today’s bold new Democrat idea is a failed power grab from the 1930s,' McConnell added, referring to the effort by Democrats to help President Franklin D. Roosevelt achieve more of his New Deal platform, without interference by the Supreme Court.