MONEY USA TODAY z TUESDAY, NOVEMBER 5, 2019 z 5B

Netflix has been at the center of the

streaming media revolution. The com-

pany led the switch from DVD rentals

to the more convenient alternative we

are now accustomed to, kicking com-

panies that couldn’t keep up to the

curb. But it did more than offer a con-

venient way to watch existing shows

and movies – it started creating origi-

nal content.

This strategy has been one of the

factors behind Netflix’s success, as its

original series have racked up dozens

of nominations for prestigious awards.

It had 117 nominations for this year’s

Emmys, more than any of its direct

competitors. That being said, with the

likes of Apple and Walt Disney about to

launch their own streaming services, it

may be increasingly harder to attract

consumers, either with its original

content or by other means.

Earlier this year, Disney announced

that it would launch its own streaming

service, Disney+, in November. De-

spite being a bit late to this lucrative

opportunity, Disney’s latest initiative

could be a hit for two major reasons.

First, the service has a lower price

than Netflix. For $6.99 a month, you

get access to Disney’s content. The

company does offer other price spe-

cials as well. For those who pay up

front for three years of service, pre-or-

dering a subscription to the platform

would save them $40. Netflix’s cheap-

est monthly plan – which doesn’t

come with HD capabilities but offers a

wide selection of content – costs $8.

per month.

Perhaps more importantly, Disney

will offer a plethora of shows and

movies from franchises that have built

a loyal following over the years. These

include many of Marvel’s much antici-

pated spinoffs, such as “Captain

America: The Winter Soldier” and oth-

ers.

Many of Marvel’s most successful

movies will make the cut, including

several of the Avengers films, Captain

Marvel, and more. The lineup of block-

busters on Disney+ will also include

some movies from the “Star Wars” fran-

chise, as well as many of Disney’s own

animated movies. Most of these titles

hardly need advertising, making Dis-

ney+ an attractive option for millions

worldwide.

Apple is also dipping its toes in these

waters with its own streaming service,

Apple TV+, for $4.99 a month. But the

company is offering the service free for a

year to those who buy some of its de-

vices.

With only nine titles at the outset,

Apple’s streaming service won’t offer

the type (or volume) of content that will

rival Disney+, at least not initially. But

the tech company is investing heavily in

original projects featuring some well-

known Hollywood celebrities. For in-

stance, Apple announced a series called

“The Morning Show” that will be avail-

able on its streaming platform and will

feature stars like Jennifer Aniston and

Steve Carell.

It’s important to remember that Net-

flix has survived competition from the

likes of Hulu and others before. Its re-

cently released third-quarter earnings

report didn’t show any strong warning

signs of the company being in trouble.

Total paid net additions increased by

12% year over year to 6.8 million sub-

scribers. Although that number was

slightly below the company’s own guid-

ance, it was the highest it had ever been

in any of Netflix’s third quarters. The

company expects 7.6 million net addi-

tions during the fourth quarter. That

would represent a 14% decline com-

pared with last year’s fourth quarter, but

it is nothing to panic about. Netflix also

expressed optimism in the face of com-

petition.

Prosper Junior Bakiny has no posi-

tion in any of the stocks mentioned. The

Motley Fool owns shares of and recom-

mends Apple, Netflix, and Walt Disney.

The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY con-

tent partner offering financial news,

analysis and commentary designed to

help people take control of their finan-

cial lives. Its content is produced inde-

pendently of USA TODAY.

Is Netflix’s advantage

over streaming eroding?

Prosper Junior Bakiny

The Motley Fool

Apple has pledged $2.5 billion in do-
nations to help combat California’s cur-
rent crisis of rising home costs, CEO Tim
Cook announced Monday.
The tech giant’s contributions have
been earmarked to help jumpstart home
building, assist first-time home buyers
and reduce homelessness in Silicon Val-
ley and the San Francisco Bay Area.
“Affordable housing means stability
and dignity, opportunity and pride.
When these things fall out of reach for
too many, we know the course we are on
is unsustainable, and Apple is commit-
ted to being part of the solution,” Cook
said in the announcement.
Apple’s move follows earlier action
by Google, which in June pledged to in-
vest $1 billion in building affordable
housing, and Facebook’s October com-
mitment of $1 billion toward fighting the
housing crisis.
Many have found the cost of living
and housing beyond their means in San
Francisco, which now commands a me-
dian home price of $1.4 million, accord-
ing to real estate brokerage firm Redfin.
Other high costs include expensive pri-
vate schools, $5 a gallon gas and pricey
restaurants.
Nearly 30,000 left San Francisco
from April to June, and homeownership
in the Bay Area is at a seven-year low,
according to data Apple cited from Red-
fin and Census figures analyzed by the
Bay Area news outlet The Mercury
News.
A breakdown of Apple’s donations: $
billion each to an affordable housing in-
vestment fund to provide the state with
“an open line of credit” to foster lower-
cost building, and a first-time home-
buyer mortgage assistance fund; $
million of Apple-owned land in San Jose
and other land toward affordable hous-
ing; $150 million for a Bay Area housing
fund, and $50 million to support vulner-
able populations.

Apple expects it will take about two

years for its donations to be fully util-

ized.

Calif. Gov. Gavin Newsom called

Apple’s pledge an “unparalleled finan-

cial commitment” toward combating

the housing crisis in the Bay Area. “The

sky-high cost of housing – both for

homeowners and renters – is the de-

fining quality-of-life concern for mil-

lions of families across this state, one

that can only be fixed by building more

housing,” he said in a statement in-

cluded in Apple’s announcement.

“This partnership with Apple will al-

low the state of California to do just

that.”

The company listed one of the first

projects to benefit from its donation as

Destination: Home, a Santa Clara

County public-private group aimed at

ending homelessness.

“Before the world knew the name

Silicon Valley, and long before we car-

ried technology in our pockets, Apple

called this region home, and we feel a

profound civic responsibility to ensure

it remains a vibrant place where peo-

ple can live, have a family and contrib-

ute to the community,” Cook said.

Apple gives $2.5B to

fight housing crisis

Google, Facebook also

offered similar pledges

Mike Snider
USA TODAY

Apple CEO Tim Cook greets shoppers

inside the Apple store on New York’s

Fifth Avenue in September.

ROBERT DEUTSCH/USA TODAY

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