Monday Cupertino, California, got the kind of fevered coverage usually reserved for the unveiling of Apple’s latest gadget. But this time, the product wasn’t a watch or a phone.
During the two-hour event at the Steve Jobs Theater on Apple’s campus, the company’s leaders detailed its plans to take on Hollywood by creating its own TV shows and documentaries. They also announced a news subscription service and a credit card.
Yes, big-name celebrities like Steven Spielberg, Oprah Winfrey and Reese Witherspoon were on hand for the spectacle. But tech watchers were also paying close attention because the announcements are part of a major shift for the Silicon Valley mammoth.
Here’s what you need to know:
Q: Why is this such a big deal?
A: Apple has spent a decade establishing its dominant place in consumers’ pockets by getting them hooked on iPhones. But after years of record-breaking profits, phone sales are slowing and the company is facing intense competition from the likes of Amazon and Netflix.
So, instead of betting on another gadget, Apple made clear Monday that it is “trying to make sure you never leave all those Apple devices you have acquired over the years,” as Daisuke Wakabayashi and John Koblin reported for The New York Times.
That means Apple is bulking up on content and services, and focusing less on hardware.
Not that there isn’t a lot of Apple hardware already out there: The company counts roughly 1.4 billion active devices as the perfect vehicles for its new content.
Q: What’s this about more subscription services?
A: First, there was Apple TV Plus, the video streaming service, which will have original programs and will include shows from networks like HBO, Showtime and CBS. Beyond that, details were sparse. No price was given.
But, as The New York Times’ Edmund Lee explained, one thing’s for sure: You won’t be able to get your favorite Netflix shows.
There was more on Apple News Plus, which was described as the “Netflix of news,” but it also raised questions about Apple’s place in an information ecosystem that’s been brutal to existing publishers.
A subscription will cost $9.99 per month. It will let subscribers read 300 magazines as well as articles from newspapers including The Los Angeles Times and The Wall Street Journal.
Executives with The Journal said they’ll hire new staff members to write content that’s exclusive to the Apple app, which Bloomberg described as a risky move that could “cannibalize existing readership.”
Neither The Times nor The Washington Post has signed on.
Apple also announced a video game subscription service, Apple Arcade, which is set to start this fall.
This article originally appeared in The New York Times.