Apple’s announcement and the impact it will have on app development and the OTT market

At its special event on September 10, 2019, Apple announced a wide array of new products and services hitting the market before the end of the year: the iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max, Apple Watch Series 5, the next generation of iPad, Apple Arcade, and Apple TV+. These releases are set to advance the way users consume and produce media. As tech lovers working with leading organizations in the fields of app development and OTT media, we’ve highlighted our thoughts on how these new releases could impact the market.

Adopting Dark Mode on iOS 13

Many existing apps are set to Light theme by default, but iOS 13 gives users the ability to switch their iPhone interface from a Light theme to a Dark theme directly at the system level. If owners want their application to automatically match the theme set at the system level, this new implementation can adopt that change. Providing the appropriate User Interface (UI) to the user will ensure a more seamless and enjoyable User Experience (UX).

iPad Apps for Mac

Companies with apps currently running on iPad can now easily transfer their apps to the Mac using the same source code. Although, it is important to note that any third-party framework used to create the iPad app also needs to support macOS. This is an impressive step forward for cross-platform compatibility, and will progressively serve to improve the experience of macOS users through access to apps which would have otherwise been unavailable.

Apple TV+

Perhaps the biggest news, in our opinion, was the announcement of Apple TV+ and all that it entails. Here’s a quick summary:

  • Available November 1, 2019
  • USD $4.99/mo. after a 7-day free trial
  • New Apple Originals every month
  • Ad free, on-demand content
  • Up to six family members can use it
  • Download content and watch offline on Apple TV App
  • 4K HDR and Dolby Atmos
  • Free 1-year subscription when you purchase a new Apple Device
  • Upcoming Apple Originals include #TheMorningShow, #SEE, #Dickinson, #ForAllMankind, #SnoopyInSpace, #TheElephantQueen, #GhostWriter, #Servant, #TruthBeTold

Apple TV+ will be competing with similar streaming services like Netflix, Hulu, and HBO. Original content will be provided via the Apple TV app and will not be limited solely to the Apple TV device. Instead, it will also be made available on popular smart TVs, streaming devices and sticks at a lower rate than comparable subscription services. The bundling of a free 1-year Apple TV+ subscription with device purchases is also an attractive incentive, and a great way to promote a service that already undercuts competitors on the price front. With this approach and price point, Apple TV+ shouldn’t expect a high churn-rate for subscribers who start out with a free year.

Lower pricing is going to be the key to success for Apple in the Streaming subscription industry. “Subscriptions” or “adoption rate” will be elevated by virtue of the number of people who are being brought in from other fronts of the business (i.e., iPhone purchasers). Content is the key driver to any streaming service, but if customers get a free year then why not check it out? Amazon has seen success with a similar model, bundling its subscription video service with Amazon Prime shipping. It is hard to say no to an offer like that.

Speaking of content, new originals like SEE and The Morning Show might be enough to grasp the attention of selective consumers who will be looking to spend their fixed streaming budgets wherever they see the most value. Plus, after a year of collecting and analyzing user data, Apple will have a large catalogue of information at its disposal. It can leverage this information for insight into where efforts should be focused to optimize their business. This will include, but will not be limited to, the types of content their viewers prefer, their viewing patterns, and how receptive they are to
the UX/UI.

Going forward, Apple will invest capital to fine-tune its service and make it more attractive to customers. Successful execution will most likely boost the service’s retention rate, and see Apple TV+ taking a bite out of Netflix’s current dominant market share. Furthermore, optimization will subconsciously raise the floor of how much people will be willing to spend on the service, justifying any price hikes Apple may implement in the future (and they’ve certainly given themselves room to wiggle).

In any case, the OTT market is set to grow well into the future, and Apple’s strategy sets them up for success. The larger Apple’s OTT service becomes, and the bigger its slice of the streaming market pie, the more opportunities there will be for studios and content providers to achieve reach and return in this space.

How can you prepare?

Consumer adoption of Apple devices and services is a near guarantee, so it is essential that firms be ready to meet users’ evolving needs and the new standards of the market. As a leader in creating bespoke and out-of-the-box solutions, Accedo is well-equipped to help you face these challenges head-on and ensure your delivery never skips a beat. Accedo’s team consists of a talented UI/UX Design Team with full cross-platform experience and a group of software engineers whose core skills are in iOS development, operating within a wider team of engineers who specialize in a multitude of device platforms. Accedo’s Quality Assurance Engineering team is also available to those companies who handle the design and development of their services in-house, but could benefit from having proven QA experts help them prepare for OEM certification. Our extensive partner program has created an ecosystem with numerous OEMs and gives us the opportunity to become intimately familiar with Apple SDKs. This enables us to deliver top-tier services like our Evolutive Maintenance, a support offering that (among other things) ensures each new OS release is ready before the new OS hits the market. Many of our existing clients take advantage of this timely service to ensure that their apps stay up to date with zero downtime, as was experienced when iOS 13 dropped on September 19.

For information on how we can work with you to create a best-of-breed solution, talk to your Accedo salesperson or visit our website at accedo.tv to browse our products and services, and request
a demo