- This year's September keynote featured a trio of new iPhones, a new iPad, an updated Apple Watch, and a shockingly low price tag for Apple TV Plus.
- The pricing announcement for Apple TV Plus sent shares of rivals Netflix, Disney, and Roku lower .
- Here's what Wall Street analysts are saying about Apple's streaming service, and what it could mean for the company's future.
- Visit the Markets Insider homepage for more stories.
Apple TV Plus is a 'major shot across the bow' to Netflix and Disney. Here's what Wall Street is saying about Apple's streaming ambitions. (AAPL)
Apple's product events have become increasingly important as the company has been forced to navigate slowing iPhone sales.
Apple's September keynote shed more light on the company's plan to jump into the streaming wars.
While the event revealed a trio a new iPhones and a new iPad, perhaps the most significant announcement was the pricing of its upcoming streaming service.
Apple TV Plus will cost $4.99 per month, undercutting competitors such as Netflix, Hulu, and the upcoming offerings from Disney, AT&T, and Comcast. Apple also said customers who purchase a new Mac, iPhone, or Apple TV will receive a free year of the service.
The news sent shares of Netflix, Disney, and Roku sliding , with Apple's pricing seen as a clear challenge to the future of other streaming competitors.
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Wall Street analysts have spent months speculating how Apple TV will fit into the tech juggernaut's larger hardware-driven business. With the highly-anticipated announcement of its pricing and the reveal of that new customers will get one year free with a device purchase, analysts are forming a more definitive picture for Apple's content strategy.
Here's what Wall Street's top analysts are saying about Apple's streaming ambitions, and what it could mean for the future of the company:
Rosenblatt: "Apple is positioning AppleTV+ as a tool in subscriber acquisition to its ecosystem"
Apple
"The key highlight from the Apple Event on 9/10 is more aggressive (lower) pricing on AppleTV+ than we previously expected," Bernie McTernan, an analysts at Rosenblatt Securities said in a note to clients on Wednesday.
He continued: "We believe Apple is positioning AppleTV+ as a tool in subscriber acquisition to its ecosystem as opposed to another source of high margin service revenue."
Wedbush: "The pricing of Apples streaming TV service at $4.99 per month is a show stopper"
Apple
Price target: $245
Rating: Outperform
"The pricing of Apple's streaming TV service at $4.99 per month is a 'show stopper' and a major shot across the bow at the likes of Netflix and Disney among others," Wedbush analyst Daniel Ives said in a research note to clients on Wednesday.
Ives add: "In our opinion with an installed base of 900 million active iPhones worldwide we believe Cook & Co. have an opportunity to gain 100 million consumers on the streaming front in the next 3-4 years."
Needham: "AAPL has started a price war with NFLX and Disney+"
Apple
Price target: Raised to $250, from $225
Rating: Strong Buy
"By pricing AppleTV+ at $5/month, AAPL has started a price war with NFLX ($13/month) and Disney+ ($7/month)," Laura Martin, an analyst at Needham & Company wrote in a note to clients on Wednesday.
Martin added: "AAPL's balance sheet won't lose this war, but NFLX might."
UBS: "The story of this launch is, for the first time, the bundling of services and hardware"
Apple
Price target: $235
Rating: Buy
"The story of this launch is, for the first time, the bundling of services and hardware," Timothy Arcuri, an analyst at UBS said in a note to clients on Wednesday.
He continued: "Additionally, monthly sub pricing of the Arcade gaming and TV+ at $4.99 for a family is lower than most expectations, undercuts all other rivals, and should spur adoption."
Bank of America: "Apple can build content by deploying capital"
Apple
Price Target: $250, up from $240
Rating: Buy
"Perhaps the biggest surprise at the event was monthly price for Apple TV+ service which was set at $4.99/month which is lower than we expected, Bank of American analyst Wamsi Mohan said in a note to clients on Wednesday.
Mohan added:"We recognize the limited content at launch but Netflix launched 13 original shows in 2013 (not dissimilar to Apple's launch) and Apple can build content by deploying capital. Apple spends $60bn in buybacks in one year which exceeds the total amount spent by Netflix on original content cumulatively since launch."
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