Apple Developing ‘Netflix For Games’ Subscription Service
Apple is in talks to develop a subscription services for gamers, Business Insider is reporting. These talks are early, however, so specifics such as how much it would cost and what games would be included in the service are still up in the air. It is known, however, that Apple is looking into being a publisher for certain games, meaning they would also manage aspects like distribution and marketing costs for some titles.
While Apple has seen a plateau when it comes to the sale of their actual devices, the subscription services they have currently in place have been working out well for them so far. Apple’s current policy for their App Store is that they take 30 percent of revenue in purchases, but lower the cut to 15 percent after the first year of a subscription. Another positive sign the company might be heading in the right direction with this new subscription service is the major profit they make off of games hosted by the App Store. Games make up about 70 percent of App Store spending, though the most successful games appear to be ones that offer in-app purchases.
Still, Apple has reportedly earned $40 billion in service revenue — and are en route to earning $50 billion per year by 2020. As BGR points out, mobile gaming continues to see growth, with experts predicting that it will be a $100 billion industry by 2021. With all of these facts in mind, it’s possible that Apple could bring in some major dough if they decide to go through with launching the new service.
Users would pay a subscription fee for access to a certain number of titles in Apple's reported effort to create a "Netflix for games," a report says. https://t.co/HJpaCMdkWs
— USA TODAY Money (@USATODAYmoney) January 28, 2019
However, the company will of course have to watch out for the competition. Microsoft, Amazon, Verizon, Google, and Sony are all companies with gaming subscription services either already on the market or in development. If Apple’s gaming subscription service doesn’t pan out, perhaps their other subscription services will see more success. The company is said to also be working on a subscription bundle that combines streaming music, original video, and news. They’ve also been buying lots of TV series, titles featuring some big names such as Oprah, Jennifer Aniston, Reese Witherspoon, and more.
As for the potential gaming subscription, development is still in its early stages. While five separate anonymous sources told the press about talks to create this service, they also emphasized that there’s always a chance that the project won’t even come to fruition in the end. Still, with the current trend of mobile gaming still on the rise, it would be a smart way for Apple to bring in more revenue.
