New research shows that only 38% of Apple TV + users are paying for a subscription to the service – about half the percentages of HBO Max and Disney +.
New research numbers show Apple TV + is not doing so well in acquiring paying subscribers, since most users of the platform are in free trial periods. The service was highly praised by Apple before its launch in November 2019, but failed to catch on culturally in 2020, which also saw the rise of Disney + and HBO Max. As the streaming war continues, Apple TV + may be in trouble.
The streaming services market is becoming almost as crowded as the bloated cable TV world it came from. Competition for old catalogs, original content, prestigious Oscar bait, price ranges and more has increased fiercely in the past two years as newcomers face industry vanguards like Netflix and Hulu. Although some managed to differentiate themselves by targeting specific demographics (families for Disney +) or adopting popular franchises (DC for HBO Max), others were left with few distinctive features and no support point established in the market.
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It appears that Apple TV + is in the latter category, as a new study by research firm MoffettNathan (via Variety) states that only 38% of platform users are actually paying for subscriptions. The other 62% are in free trials, mostly temporary subscriptions that come with purchases of new Apple devices. The study also found that only 30% of current hitchhikers plan to continue with their subscription as soon as they have to pay for it. In comparison, the same study found that only 16% of Disney + users and 23% of HBO Max users enjoy the platforms for free.
These numbers are disheartening at best and damning at worst for Apple TV +. The platform tried to build credibility as a source of prestige for quality dramatic and comedic content, but this clearly isn’t doing enough to win a place in the cruel streaming market. The Morning Show, which was supposed to be the flagship of Apple’s original programming, spent $ 15 million per episode and hired a star-studded cast, only to receive an average critical reception after launch.
There was a time when a high-budget original drama was enough to attract some interest in the streaming space, but the days of House of cards and The Man from the High Castle are in the past now. The streaming landscape is increasingly about branded content, franchise development and deep movie and program libraries – none of which Apple has had success with. Apple TV + is to survive as something more than a purchase bonus, you may need to make some important changes soon.
Sources: MoffettNathan (via Variety)
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