Aside from enthusiastic Apple executives, no one has given much thought to it Apple TV Plus. Even with 6 billion dollars Dedicated to content And a roster of talent that included JJ Abrams, Reese Witherspoon, and Oprah Winfrey, little was starred on Apple TV Plus at launch. Except for Morning showApple TV Plus has barely managed to enter the conversation, while some are New arrivals like Disney Plus Shave off the gate.
But flow isn’t a sprint. It’s a marathon. Apple TV Plus’ anniversaries arrive as the platform improves every month, but it’s still where Apple needs it.
It’s impossible to ignore the more obvious situation Apple TV Plus faces: there’s no back catalog to keep people around once you’ve finished watching the 31 TV series and the handful of movies currently on the platform. For comparison, Apple TV Plus has 400 times fewer movies than NetflixAnd very few of those movies on Apple TV Plus are must-watch. Morning Show, Ted Lasso, And the Legendary Quest They are a few exceptions, but that’s barely enough to require people to spend $ 5 a month – so Apple hasn’t, giving the majority of its subscribers the ability to stream over the past 12 months for free.
It’s a problem that even Apple is fully aware of. The company extended the free trial period by another three months, giving those who signed up last November when the Apple TV Plus debuted Until the end of January. Apple TV Plus is also “the only service that the majority of its subscribers source from promotions,” according to analyst Michael Nathanson. Even worse, 29 percent of Apple TV Plus subscribers don’t have a renewal plan once they have to spend $ 5. Apple TV Plus faces one of the largest percentages (17 percent) out of all the major broadcasters, according to a HarrisX survey. Nathanson wrote that his team remains concerned about Apple TV Plus, adding that the streaming device “is at risk of losing momentum if it cannot attract renewals with exciting original content in the coming months.”
Like other companies, Apple is not immune to the problems caused by the pandemic. Film and series production has been forced to halt. While Apple has been able to purchase some movies from studios seeking any form of revenue, Apple TV Plus has not become the live streaming platform. With the six-month Apple TV Plus brand, in the middle of a pandemic, most analysts have moved away with the same remark: Things weren’t looking great to Apple. Media tycoon Barry Diller told NBC’s Dylan Byers That Apple “is still not participating in it with both feet”
One year later, I would argue that Apple is in it, but the company’s business is still just beginning. Apple TV Plus’ role is becoming increasingly apparent as a driver in helping to sell The company’s new Apple One packageAnd, combining services like Apple Music, Apple TV Plus, Apple Arcade and more in one plan. Apple TV Plus doesn’t need to be Netflix to help Apple achieve its primary goal of creating a service ecosystem that’s confusing enough that people pay for a bundle and are locked in the world of Apple. See: amazon. However, she really needs to entice people.
Apple does not sell as many iPhones or devices as before; Creating a service-based ecosystem that generates revenue each month is where Apple is pumping its investments. The last quarter, Apple reported Record revenues of $ 13.3 billion from its services division, an increase of nearly $ 2 billion from the previous year. CEO Tim Cook also wasn’t shy about pointing out how important Apple’s service division is. The company first started focusing on software in 2015 after iPhone growth slowed, and since then, services have boomed.
Cook and his company are gaining investor interest in the hub. They also have consumer curiosity. They still need people dollars. For Apple TV Plus to be an option, even as part of an enthralling package, Apple TV Plus must offer something worth buying. It is not currently working (hence the extended free trial), but it is slowly getting started. Appears like Ted Lasso, that was Renewed for a third season Before the second show up, help.
Apple has also begun to change its strategy slightly, picking up shows to restart or continue – and with it, Their entire libraries. The originals are not enough. Apple needs a catalog of addresses to keep people flowing. As AT&T CEO John Stankey said of HBO Max in his company’s latest earnings call, original titles are what lead to customer acquisition, but strong libraries will keep it flowing.
So, is Apple TV Plus a total failure? It certainly hasn’t seen the success of Disney Plus, but Apple doesn’t need the largest streaming service in the world. It just needs enough new content, constantly, to make people feel okay with spending $ 5 a month – or, as Apple likely prefers, purchasing the bundle plan. Fittingly, the first year of the Apple TV Plus program is mostly free, giving curious bystanders the opportunity to see if Apple can pull it off. It was a trial period for Apple, too.
The biggest feature that Apple has is Apple. The company A value in excess of $ 2 trillion And sitting on an absurd amount of cash. However, this doesn’t always translate into a better environment for creatives. Amazon has unlimited resources and has struggled with its gaming ambitions, for example. But Apple could fund TV Plus as a fun side project that lets Cook sit with celebrities at the Oscars and not worry about going the red. Capital allows Apple to continually invest in projects without worrying about whether Apple TV Plus will ever equalize.
Additionally, Cook and his team explain that building his service offerings, and generating tens of billions of dollars in revenue each year through apps that keep people coming back, is extremely important. As Diller told NBC, Apple had its toe on the game last November. It has all the power, influence and capabilities to become a cultural powerhouse, but CEOs have yet to fire in the deep end. It’s time to take a deep breath and dive.