Apple is investing $6 billion (around £5 billion) in the creation of original content to attract users to the platform, reports claim.
Apple TV+ is planned to premiere in the next two months in effort to beat rival Disney+’s November 12 launch date.
The sum pales in comparison with the expenditure of streaming leader Netflix, however, which is predicted will invest a total of $14 billion this year in content.
Apple TV+ will be available through the Apple TV app and other, third-party products, and is expected to launch in the US for $9.99 per month.
Apple’s budget for the first year of the streaming platform has reportedly been boosted from $1 billion (£0.8 billion) to $6 billion (£5 billion) as it endeavours to generate a content library capable of standing alongside those of its competitors.
This sum is relatively modest in comparison with the investment of streaming leader Netflix, who spent $13 billion (£10.7 billion) on original content last year — with this year’s budget expected reach as much as $14 billion.
According to the Financial Times, however, Apple has been successfully attracting interest from Hollywood creators by offering larger investments earlier in the production process.
While Apple has yet to reveal the pricing of its subscription service, a sum of $9.99 per month is reportedly being considered for the US — along with a free trial period to entice users — according to Bloomberg News.
This figure — which would match those of Apple’s Music and News+ services — would be slightly higher than both Netflix and Amazon’s basic US charge of $8.99, as well as the $6.99 expected to be charged by Disney+.
The TV+ service will be incorporated into Apple’s native TV app and will also be accessible through various third-party products — such as Amazon Fire, Roku and Samsung Televisions — with plans to launch globally in over 150 countries.
In contrast with Netflix’s favoured binge-friendly, all-at-once release strategy and HBO and Hulu’s weekly offerings, Apple is reportedly considering releasing three episodes of shows upfront, followed by weekly instalments.
The move towards services is part of Apple’s plan to create additional revenue from its base of Apple Watch, iPad, iPhone and Mac users.
Repeat hardware sales for the tech firm have diminished lately, in the face of rising prices, market saturation and a lack of enticing new features.
The firm reportedly aims to reach $50 billion (£41.3 billion) in service sales by 2020, with TV+ joining stablemates Apple Music, Apple News+, iCloud and upcoming gaming platform Apple Arcade.
Meanwhile, Walt Disney Co said on Monday that it will launch its Disney+ video streaming service in Canada and the Netherlands on Nov. 12, the same date as its previously announced United States launch.
Disney+ will also launch in Australia and New Zealand a week later, the company said in a statement, adding that the service will be priced between $6 to $8 per month in these countries.
Disney’s new service will exclusively stream its latest movies including ‘Avengers: Endgame’, ‘Aladdin’ and ‘Star Wars: The Rise of Skywalker’, the company said.