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Mar 11, 2019

Apple announces March 25 event to unveil video, news services

Teal Linde discusses Apple

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Apple Inc. (AAPL.O) announced an event March 25 where the iPhone maker is expected to introduce an original video programming service and a new premium magazine subscription plan.

The company pitched the event on Monday with the tagline “It’s show time.” It will be held in the Steve Jobs Theater at Apple’s Cupertino, California, headquarters.

The video service, which is designed to rival offerings from Netflix Inc. (NFLX.O) and Amazon.com Inc. (AMZN.O), will couple Apple-developed or funded TV shows and movies with the ability to subscribe to content from providers like Starz, Bloomberg News reported last month.

The new offerings will contribute to Apple’s services segment, which is growing in revenue and importance as consumers hold onto smartphones, such as the company’s signature device, for longer before buying replacements. Apple’s services business is on pace to generate US$50 billion per year by 2021, the company has said.

The magazine subscription service will be integrated into the existing Apple News app and is based on the company’s acquisition of Texture last year. The product will come as part of an iPhone and iPad software update called iOS 12.2. The company also plans an update to Apple Pay in iOS 12.2, which will lay the groundwork to support a new partnership on a credit card with Goldman Sachs Group Inc.