Why did Apple have to call on Hollywood stars for the next phase of the company

Recently, Apple took the stage to announce the all-new streaming service - Apple TV Plus, the company's initiative to bring original shows and movies and compete with the likes of Netflix and Amazon Prime video. All the Apple announcements that we have covered in the last 24 hours originated straight out of Apple's Cupertino, California headquarters during the event.

Apple chose this event to make it into a full-fledged star-studded event and the timeline could not be any better because it comes at the time when Apple sales are starting to decline. The main attractions of this Apple event were not the announcements but the celebrities including Oprah Winfrey, Steven Spielberg, Jennifer Aniston, Reese Witherspoon, Steve Carell, Jason Momoa, Alfre Woodard and Kumail Nanjiani who were part of it. 

Apparently, Apple has finally realised that building an ecosystem where the original content plays a very important role is of paramount importance. Although Amazon was late to join the game, it is starting to show some significant results in such a short period of time. So, it kind of makes sense when Apple gives such importance to Hollywood stars at its own event.

READ | Apple announces Apple TV+ video streaming service, will be available in 100+ countries including India this fall

Netflix’s ‘binge-watching’ model has experienced phenomenal success over the last several years. In fact, Netflix co-founder and CEO Reed Hastings has frequently spoken about the company’s ‘episodic’ format where all the episodes drop all at once and users have the freedom to binge watch the show without any kinds of interruptions.

But Apple and Netflix are miles apart when it comes to subscription-based content streaming business and for obvious reasons. Netflix’s only, main business is content streaming whereas Apple’s primary focus has always remained on making gadgets including iPhone, iPad, laptops, TV box, computers and more.

Apple co-founder first thought of making a powerful business out of the TV. Since then, it has taken nearly eight years for the company to pull it off. Meanwhile, we are seeking more clarity on Apple’s new video service plan either the company is thinking about original TV shows and movies that reportedly sees an investment of $1 billion - far less than HBO and Netflix spend every year.

READ | Apple rolls out Apple News+ subscription service with over 300 magazines and more

Foraying into the world of content could be Apple’s move to compensate for its falling iPhone sales since Apple has long been trying to make sure that its primary business doesn’t run into any trouble. It remains to be seen how Apple’s video streaming unfolds in the next few months.

(With AP inputs)