Apple’s Launch of
Apple TV+ not Going as well as Most Predicted STUART HIMMEL Staff Writer
Apple’s Inc’s streaming video service has gained very limited
backlog of catalogue content. Another potential reason why
traction with consumers which could represent a cautious
Apple TV Plus has not caught on with subscribers could be
approach as the company moves away from hardware sales.
because Apple hasn’t been able to effectively promote TV Plus to its 1.5 billion device installed base. The company may
Analyst estimated that fewer than 10 million consumers have
also be deliberately scaling its promotions of TV Plus slowly
opted for the free 12 month trial of Apple TV Plus which
to mitigate the negative accounting impact. Investors should
equates to 10% or fewer of eligible consumers.
watch closely the adoption of TV Plus as the take rate will provide a better indication of potential acceptance of the
Apple TV Plus may be failing to register with consumers due
service as well as Apple’s ability to successfully launch new
to its limited content offerings. Other streaming services
revenue generating services.
such as Netflix or Amazon Prime offer reruns to well-known content while Apple only offers original shows with “The
Shares of Apple are up nearly 80% from a June low although
Morning Show” starring Jennifer Aniston, being the most high
it the stock price has recently dropped on concerns over the
profile. Walt Disney’s Disney Plus service has benefited from
Coronavirus outbreak. Apple services business grew less
the company’s pool of properties namely Star Wars and
than expected in first quarter results which was seen as
Marvel to name a few.
disappointing. Credit Suisse analyst suggested the business is key to long term success and is often cited as a driver of
A panel hosted by Universal Serial Bus (USB) said that Apple
multiple expansion.
TV Plus needs a mega hit original series to retain subscribers and may likely have to also acquire an asset with a big W W W. M B E F O RYOU. C O M
MBE BUSINESS MAGAZINE APRIL / MAY 2020
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