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Apple’s TV and film streaming service could be more expensive than Netflix, according to one analyst.

Jefferies analyst Tim O’Shea reckons the service will cost $15 (£11) a month. That’s more than the $12.99 a month Netflix charges in the US for its standard plan (in the UK, it costs £7.99 a month).

That would be a bold move by Apple. Netflix has a wealth of award-winning original content like Stranger Things and the Oscar-nominated Roma, which has helped it achieve 140 million customers around the world.

Apple and Netflix will face some stiff competition from Disney. Its Disney+ streaming service will be cheaper than Netflix when it launches at the end of the year, according to Disney’s CEO Bob Iger.

O’Shea sees some big challenges for Apple in the streaming space, especially if it prices itself higher than Netflix.

“Apple’s spending a fraction of what Netflix is spending on original shows and movies, meaning that at least at first it will likely be far more dependent than the streaming video giant on third-party content,” he said in a note to investors. “But the company’s plans to take a 30 per cent cut on revenue may not sit well with many Hollywood studios and networks.

“It’s hard see how those economics fly.”

Apple is expected to announce full details of the service at an event on 25th March. It should launch in the spring.

Source: Business Insider

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