In late May, we reported that Apple was working on a new category of hardware with a Siri-powered smart home speaker. It would be similar to the Amazon’s Echo. According to a new report by Bloomberg, the rumored Siri-powered device is currently undergoing prototype testing.
The rumors indicated the device would have the same functions as the Echo, but be much smarter. It would be capable of controlling your home’s functions like the Home app does on the iPhone and iPad. It will also have a camera which detects who is speaking and their emotional state using facial recognition technology. The speaker will this information to select the person’s preferences like their playlists or enhance the tone of the room. Finally, it will be activated with “Hey Siri.” Hopefully Apple will enhance Siri to be similar in functionality to Microsoft’s Cortana or Amazon’s Alexa.
With Apple Music and a rumored streaming Internet TV service coming next year, Apple is working their way into on-demand entertainment. Music and TV channels will be available at any time of day whenever we want, but what else is there for Apple? What else do we want on-demand? Movies. Specifically new movies. Using this inspiration, we created a concept called Apple Entertainment that allows subscribers to access movies, music and TV on-demand.
Apple Entertainment is a revolutionary system that incorporates three entertainment services into one. It takes Apple Music, Apple’s rumored Internet TV streaming service and a new idea called Apple Movies and packages them all together for a set monthly price.
The first component, Apple Music, was introduced at the Worldwide Developer’s Conference in June and it allows subscribers to stream any song at any time, on-demand. It also includes curated radio stations, like Beats 1, and a platform for artists to connect with their fans. Subscribers can access all this content for a set monthly price of $9.99 for individuals and $14.99 for families. It’s a whole new system of music that directly competes with Spotify, Rdio and other similar services.
The second component of Apple Entertainment is Apple’s rumored Internet TV streaming service. It was expected to be announced in June, then this was pushed back to September and now the release is sometime in 2016. The Wall Street Journal reported that the service would start at twenty-five channels anchored by major networks like CBS and Fox. The channels would be live and Apple would be competing directly with Sling TV. The rumored price is around $30 to $40 per month.
The final component is Apple Movies, which hasn’t been really rumored or announced yet, but we feel that it is the next step for Apple. This would allow subscribers to access movies on-demand, like Netflix and Hulu. As of earlier this year, the iTunes Store had 50,000 movies available for rental and purchase. If Apple could offer these movies on-demand for a monthly fee instead of paying per rental, it would be huge. Understandably the newer movies would probably not be able to be streamed immediately after release, at least for now, but Apple could offer movies ahead of Netflix. We predict a monthly charge for this service of $9.99 or $14.99, similar to Apple Music. In addition, Apple is reportedly going to be making their own movies and TV shows, similar to what Netflix does now so this could be further evidence that Apple is working on on-demand movies and TV.
Apple Entertainment would take each of these services (music, TV and movies) and put them together for a set price of $60 to $70 per month. Since Apple doesn’t believe in bundling and saving money, like when they offered AppleCare+ for the Apple Watch and iPhone together and literally made it the price of the one plus the other (no discount), we see Apple doing something similar here. The minimum price would be $60 (assuming $40/month for the TV subscription) for one user and $70 for two or more up to six. Subscribers can view music, radio, TV shows, live TV channels, movies and more on-demand. Apple would take over the living room in terms of entertainment and after seeing the new Apple TV, we could very well be seeing this in the next few years.