Tech
Apple TV+ spent $20B on original content. If only people actually watched.
For example, Apple TV+ is embracing bundles, which is thought to help prevent subscribers from canceling streaming subscriptions. People can currently get Apple TV+ from a Comcast streaming bundle.
And as of last month people can subscribe to and view Apple TV+ through Amazon Prime Video. As my colleague Samuel Axon explained in October, this contradicts Apple’s long-standing approach to streaming “because Apple has long held ambitions of doing exactly what Amazon is doing here: establishing itself as the central library, viewing, search, and payment hub for a variety of subscription offerings.” But without support from Netflix, “Apple’s attempt to make the TV app a universal hub of content has been continually stymied,” Axon noted.
Something has got to give
With the broader streaming industry dealing with high production costs, disappointed subscribers, and growing competition, Apple, like many stakeholders, is looking for new approaches to entertainment. For Apple, that also reportedly includes fewer theatrical releases.
It may also one day mean joining what some streaming subscribers see as the dark side of streaming: advertisements. Apple TV+ currently remains ad-free, but there are suspicions that this could change, with Apple reportedly meeting with the United Kingdom’s TV ratings body recently about ad tracking and its hiring of ad executives.
Apple’s ad-free platform and comparatively low subscription prices are some of the biggest draws for Apple TV+ subscribers, however, which would make changes to either benefit controversial.
But after five years on the market and a reported $20 billion in spending, Apple can’t be happy with 0.3 percent of available streaming viewership. Awards and prestige help put Apple TV+ on the map, but Apple needs more subscribers and eyeballs on its expensive content to have a truly successful streaming business.