pcmag.comApple Amazon has been competing with Netflix for years, but Apple's high-profile entry into the straming landscape has the potential to further tip the balance of power toward the tech industry.Apple unveiled its Apple TV+ and Apple TV Channels services in April, and finally launched Apple TV+ on Nov. 1 for $4.99 a month. Apple knows its content library is small, so it plan to gain market share by giving one year of Apple TV+ for free to those who buy a new iPhone, iPad, Mac, or Apple TV. Here's how to get it.Apple TV+'s launch titles include: cable news drama The Morning Show starring Jennifer Aniston, Steve Carell, and Reese Witherspoon; future post-apocalyptic series See starring Jason Momoa and Alfre Woodard; an Emily Dickinson biopic series starring Hailee Steinfeld; and sci-fi space race series For All Mankind. Most of the shows have received tepid reviews, but Apple has billions of dollars worth of original content investments in its development pipeline to populate the fledgling streaming service in the next year or two, including collaborations from big names like Steven Spielberg and Oprah.The redesigned Apple TV app is also available on more form factors, including Roku and Amazon Fire TV devices, and smart TVs from Samsung, Sony, LG, and Vizio. It will offer original content through Apple TV+, as well as streaming app and network subscriptions through TV Channels, which is similar to the add-ons offered by Prime Video and Hulu.Through TV Channels, Apple aims to bring an App Store-like gatekeeper approach to controlling streaming content on iOS devices, and will reportedly take a 30 percent cut on every streaming app subscription through its service. That's a steep commission, but in line with the 30 percent it currently takes on premium app and streaming-service subscriptions through the App Store. The commission drops to 15 percent for subscription renewals.TV Channels launched in May with some big partners, including Amazon Prime Video, HBO, Hulu, Showtime, Starz, CBS All Access, and many others (but not Netflix); Apple showcased Prime Video originals such as The Marvelous Mrs. Maisel in demos during its launch event. TV Channels will also let users choose traditional cable bundles from providers such as Optimum and Spectrum, as well as over-the-top (OTT) cable replacement services including AT&T TV Now.This strategy is part of Apple's broader push into software and services: It has grand designs to expand to several other industries beyond the steadily growing chunk of recurring revenue it currently makes from iCloud, Apple Music, and Apple Pay. Amid stagnating iPhone sales, Apple's glossy launch event for its new slate of services highlights how it sees its future growth.Apple, like Amazon, owns its data centers, so every new service it releases holds tantalizing profit margins. Along with its new streaming offerings, Apple also unveiled its $9.99-per-month Apple News+ service for a bundled subscription to 300 magazines and newspapers, its Apple Arcade games subscription service (which also costs $4.99/month), and the Goldman Sachs-backed Apple Card.For all of these services—particularly where it's aggregating content under its own banner—Apple will take a hefty cut. The Wall Street Journal reported that the tech giant is taking up to 50 percent from news publishers for Apple News+, which is built on Apple's acquisition of Texture, described as a "Netflix for magazines."“I think entertainment's going to become a key element of Apple's business,” said USC's Jeffrey Cole. “For them, spending $2 billion on [original content] is just dabbling. If they like what they see, I think they'll have a $10 billion budget.” (Photo by Roy Rochlin/WireImage)

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