Apple to spend $1 billion on original video content

Apple to spend $1 billion on original video content After Disney’s foray into the video streaming space last week, tech-giant Apple has decided to take the plunge. In this week’s subscription roundup, Apple’s $1 billion investment towards its new video streaming service is our main feature. Our second story is about Cisco’s steady rise with subscriptions. In addition, we feature an interesting article that explores the popularity of subscriptions.

Apple to compete with Netflix, Amazon Video and Disney with a new streaming service

Cupertino-based tech company Apple has decided that it wants a stake in the video streaming pie. The company will invest $1 billion towards producing original video content. Earlier this year, Apple had launched two original programs - ‘Carpool Karaoke’ and ‘Planet of the Apps’ - on Apple Music. While these shows did not receive much love from the audience, it did show the direction Apple wanted to take with its programming. Apple had recently also hired two former Sony executives to spearhead their video programming venture. Can Apple carve out a niche for itself in the crowded subscription streaming space?

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Cisco’s shift to the subscription model will help them in the long term

Cisco’s latest earnings report may not have excited the markets, but experts think that the company is on the right path on the journey towards a software and subscription-based model. Recurring revenue represented 11 percent of total product revenue in this quarter, up from 3 percent in the same quarter last year. The key drivers of growth in recurring revenue include its Cisco ONE bundles along with security and collaboration software.

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Subscription businesses see rapid growth

According to a recent report, subscription business websites saw 37 million visitors in the month of April 2017. This number has grown by over 800% in the last three years alone. Top subscription sites include Ipsy and Birchbox for beauty products, Blue Apron and Home Chef for meals and Dollar Shave Club for men’s shaving products, among other websites. Beauty, food and apparel remain the most popular categories for subscriptions. Technology has been a huge catalyst for growth in these companies, but it is also a measure of the demographics of the subscribers. Certain characteristics such as age, college degree, income levels and gender play a huge part in propelling the subscription revolution. Another reason for growth in subscription is a change in retail customers’ preferences. Customers want excitement and personalisation during their shopping experience and subscription businesses seem to be doing a very good job of that.

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Also, read about Disney’s plans to launch its own streaming services.