TV’s Role in Apple’s Services Strategy

The announcement yesterday that Samsung TVs will get a new iTunes Movies and TV Shows apps is a big deal. As is the news that Samsung, VIZIO, Sony, and LG are going to integrate AirPlay 2 into their TV offerings. I made that case on TMO Daily Observations on Monday. Pete Kafka at Re/Code has a really incisive piece of analysis looking at the fallout of the Samsung announcement. He lays out how Apple is moving into becoming a services company, or at least how it is making its services business more important, and how TV is part of this strategy.
The obvious and accurate takeaway is that Apple has conceded that Apple TV, the device that was supposed to help it own the living room, isn’t succeeding — it trails Roku, Google and Amazon in streaming market share — and that Apple needs to be on more devices if it is going to sell more services — which is its plan to combat slumping iPhone sales.