Apple TV+ managed to make history in a short timeboth in the film industry and in streaming. the victory of CODA as the best film at the Oscars is in turn the first prize for a film released on a platform, a career in which Netflix has been immersed for years and where the Apple TV + proposal -although not with its own production – has been advanced.
Since its launch in March 2019, Apple has opted for the creation of a small catalog but of high quality. And, three years later, the Oscar seems to ratify his bet. However, as a business model, recent data suggests that Apple TV+ isn’t a big deal for the Cupertino company.
We talk about ‘churn’, or the rate of users who unsubscribe from a platforma metric that since the beginning of the so-called continuous wars it frightens managers and arouses the interest of analysts. Above all, due to the secrecy with which Netflix or Apple itself manages all their figures.
The logic of churn It’s clear A major streaming service retains most of its subscribers month-to-month, who continue to renew as they find the offer attractive. A service which, on the contrary, has a churn high can be considered going through hardship. Well, Apple TV+ seems to have the churn the highest in the industry according to an estimate by consulting firm Antenna Analytics.
Compared to services like Netflix where only 2.4% of its subscribers unsubscribe each month or 3.7% from Disney Plus, Apple TV+’s churn rate is almost five times higher than Netflix’s. hovering around 10.4% on average with peaks of up to 16% in August 2021.
This noticeable difference, beyond the fact that Apple’s catalog may still be sparse, is easily explained when the policy the service started with is taken into account. Apple has offered a full year of access to the platform to anyone who has purchased one of its computers, an iPhone or an iPad.
In July last year, Apple ended these massive free trials and reduced the period to three months. After that, Apple TV+ costs $4.99 per month in the US and the same amount in euros in Spain. The change in free time coincides with the period of churn Apple’s biggest.
50 million subscribers… But how many are paying?
Apple has yet to release the official subscriber count. he has, but according to leaks published by Information could be around 50 million. Of course, no one knows for sure how many are paying for the service or, even more so, how many have it in an Apple One subscription.
So far, Apple TV+’s annual content budget has hovered around $6.5 billion. A smaller amount compared to Netflix ($17 billion) and behind Amazon Prime Video ($9 billion), which overtook Apple in 2021, but very significant.
It doesn’t look like the investment so far has paid off given the cast and creators Apple is recruiting, but for the world’s most valuable company, it doesn’t look like the lack of profitability on that leg is now a problem. Even more so when it brings with it awards like this Oscar that expand Apple’s name outside of technology.
It’s also worth remembering that Apple had set some important pricing milestones with ted lasso: To be the first streaming service to win an Emmy in just two years of history and to place this series as the first comedy to win the award in its category born directly on a platform.
Even cases like CODAwhich he acquired the rights to after going through Sundance for 25 million dollars in an offer that earned Netflix the opportunity to exhibit the film, Apple was content to show only self-produced content on its platform, with occasional Sony deals, like doggy style.
A commitment based on quality and the absence of haste or even the intention to compete which can be worth to the Cupertino company to have one more medium in which to leave its mark, which some already compare to Disney for its tendency to promote stories where sex or violence do not have little space.
We’ll see as time goes on, whether for Apple to have this award-winning storytelling speaker still makes sense even if he can’t fix the apparent follower drain he currently has.
I am Bhumi Shah, a highly skilled digital marketer with over 11 years of experience in digital marketing and content writing in the tech industry.