Apple May Adopt Amazon's Strategy With New TV App Plan

Apple Inc. (AAPL) plans to start selling third-party video subscription services directly through its TV app, according to Bloomberg, mirroring rival Amazon.com Inc.’s (AMZN) strategy.

At present, the iPhone maker provides an aggregating service that enables users to locate various channels and shows, including ABC, HBO and NBA League Pass, within its TV app. However, once customers find what they want to watch, they are then sent to third-parties to pay and view the content.

Under the redesign, which Bloomberg’s sources said should be made available next year, subscription purchasing will be accessible directly via Apple’s TV app. This move opens up the possibility for the Cupertino, California-based company to eventually enable users to stream content from its app as well. (See also: Why Apple Will Not Buy Netflix or Disney.)

Amazon currently offers a very similar product. Amazon Channels gives the company’s Prime subscribers the ability to add paid third-party services, such as HBO, Starz and CBS all Access, to their Prime Video service. The online retailer giant’s paying customers can then stream this third-party content through the Amazon Video app.

Channels has proved to be a big success since it was first launched at the end of 2015.

Thanks to iTunes, Apple has become one of the biggest sellers of movies and TV shows. However, the company has also failed to get a decent grip on the growing popularity of on-demand services.

Now that iPhone sales are slowing, Apple is increasingly focusing on maximizing the potential of content subscriptions and services such as Apple Music and iCloud storage. Sales from services rose 31% in the recent quarter to a record $9.2 billion and are expected to generate revenues of $50 billion by 2021. (See also: Gates, Buffett Double Down on Praise for Apple.)

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