facing Apple TV Plus, service Video streaming offered by Apple, the biggest test in its history as free trials run out.
The service costs $4.99 a month. It’s also bundled with other Apple services like Apple Music and iCloud in bundles called Apple One, starting at $14.95 per month. But many subscribers do not pay.
Apple offered a large number of Apple TV Plus subscriptions to launch the service. Beginning in September 2019, anyone who purchased an iPhone, iPad, Mac, Apple TV, or Apple Watch product gets a free one-year subscription to Apple TV Plus.
During the pandemic, Apple extended the offer twice for people whose trial periods were about to expire.
The majority of service subscribers are still in promotion, with 62 percent of existing subscribers accessing Apple TV Plus through a promotional package.
Apple did not say how many subscribers to the service. But it has sold hundreds of millions of its devices since late 2019.
Apple has now started separating Apple TV Plus subscribers from the free plan.
On July 1, people who purchase Apple products will be eligible for a free 3-month subscription to Apple TV Plus instead of a year.
People who got the trial version will not be able to get it again.
Also during July, the first subscribers who activated the promotion automatically start billing for the service after accessing its offers for approximately 21 months free of charge.
This is a big test for Apple. A critical point is represented by Apple reducing its reliance on free trials of the video streaming service. For newer or smaller services, partnerships and promotions are an important customer acquisition tool.
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Apple TV Plus has less content than the competition
Apple has always had less movie and TV content than other streaming services, which may be why it came at a lower price point, at $8 per month for Disney+ or $8.99 for the standard Netflix plan.
When the Apple service was launched in November 2019, it contained 9 original shows and movies. She now has about 87 original TV shows and documentaries. This is not close to what other services offer.
Hulu, for example, has thousands of offers. Many of them have large fan bases because they have been televised. Both Netflix and Amazon Prime Video contain more than 1,000 original and licensed shows for customers to watch.
Apple has not authorized any non-exclusive offers for its service, instead offering financially backed offers. It hasn’t spent on buying media companies to fill its roster, unlike Amazon, which has taken over MGM Studios.
It features most of the big Apple producers and actors, such as Oprah and Steven Spielberg. However, these talents are not exclusively associated with the company.
Oprah’s most important interview in recent memory with Prince Harry was broadcast on CBS. Steven Spielberg recently signed a deal with Netflix as well.
Streaming ratings are notoriously confidential, and Apple has never disclosed how many of its shows have been viewed. When Apple executives ask about the success of their content, they are referring to award nominations.
In a press release last week, Apple said its offerings have received 112 awards and 389 nominations. Overall, Apple’s content library still lags far behind the competition. Not strong in this area.
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part of the whole
It’s hard to know how Apple TV Plus competes with Disney or Netflix in terms of subscribers, because Apple doesn’t release stats.
Netflix has 208 million subscribers worldwide. While Disney has 100 million subscribers.
Analysts are reluctant to provide estimates, but based on the number of smartphones Apple sells annually, tens of millions of people could have gotten the promotion for the video service.
Apple sold 206 million iPhones globally in 2020, not including its other products that come with a free trial.
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Percentage of subscribers is blurry
Survey data indicates that 29 percent of subscribers are not planning to renew and 41 percent are not yet sure. Only 30 percent said they plan to continue signing up.
Apple has never said it plans to take on Netflix, so the total number of subscribers may not be that important to the company.
He believes Apple TV Plus is another among many designed to lure users into iPhone and Apple services, in line with the company’s overall strategy.
Apple wants to get you into its ecosystem by buying a device, and that’s how Apple thinks about subscriber numbers.
It said in April that it had 660 million paying subscribers on its services. But this also includes anyone who subscribes to an app through App Store billing.
Apple TV Plus gives the company commercial-free content that it can use to promote new audio and video standards it’s putting into its products.
For example, when the shows first came out, they supported the Dolby HDR standard that produces better picture quality when viewed through a supported Apple player.
The following year, Apple announced that iPhones could shoot video with Dolby Vision HDR.
And Apple launched a spatial audio feature that works like surround sound when listening to some Apple headphones.
Apple TV Plus shows and movies support spatial audio. This gives Apple customers the ability to watch an offer that it supports without the sponsored content being available from competitors.