Apple Talking With Studios About New Movie Licensing Deals for Apple TV+
Apple TV+ has licensed dozens of non-original movies so far in 2024, but only for limited engagements.
Apple TV+ may be about to undergo its biggest transformation since the streamer launched in 2019. According to reporting from Bloomberg, Apple is in talks with major Hollywood studios about licensing a far larger collection of films for its streaming service than ever before. If the talks are focused on long-term licensing deals, it would represent the first time in the history of Apple TV+ that it has welcomed a wide range of licensed content for more than a few months at a time.
Key Details:
- Apple wants to add new movies both in the United States and internationally.
- Earlier this year, Apple underwent several rounds of movie licensing from top studios.
- Apple TV+ is one of the only streamers that tries to offer only original content, and licensing could markedly boost engagement on the service.
The report from Bloomberg does not specify whether Apple is talking about licensing movies from these studios for multi-year stays, or if it is pursuing more deals like the temporary licensing agreements it made with production houses earlier this year. In March, Apple licensed around 50 movies owned by studios like Disney, Warner Bros. Discovery, and Paramount for limited-time runs on the platform. In April the service welcomed a new batch of movies and in June it did so again.
These movies only stayed on Apple TV+ for a few weeks at a stretch, so it would make sense if the new discussions centered around longer-term licensing agreements. The streamer saw impressive engagement for the movies when they did appear, and licensed titles frequently showed up on the daily Top 10 list that Apple TV+ places on its homepage.
Apple’s negotiations with studios have focused not only on adding licensed movies to Apple TV+ in the United States, but abroad as well. A move like this would be in line with Apple’s sports acquisition philosophy; the company has eschewed domestic ports deals in the past because they would grant its streamer rights to a given league or organization’s games only in one country, instead of globally.
Why Would Apple TV+ Want More Licensed Titles?
Perhaps aided by the fact that it is a tech company first and is not banking on Apple TV+ to be its primary revenue driver, Apple has been quite patient with its streaming service. As it is with most internal data, the company is secretive about the total number of subscribers on Apple TV+, but most estimates have had it at between 40-50 million customers for several years. Sales of computers, iPhones, and other devices bring in a huge chunk of Apple’s revenue, which is why it hasn’t had to rely on its streaming service as a major profit center.
But no company can afford to have its streaming service drag revenues downward either, and Apple may be facing this scenario. It has a much higher than average churn rate according to Antenna, suggesting that its originals-only content strategy has trained customers to sign up when they want to see a particular Apple TV+ series, then cancel when that series has concluded.
That’s probably the biggest reason that Apple is pursuing more movie licensing deals. It wants to create a service that viewers will stay subscribed to in between new prestige TV originals, and licensed movies are a great way to do that. The report doesn’t mention that Apple is seeking licensing deals for TV shows, so perhaps it wants to continue with a hybrid strategy of having only original TV, but mixing original and acquired movies in its library.
Many studios have made explicit their desire to enter into more licensing deals as a way to boost revenues, especially those tied to companies that have declining cable channels. That means Apple should find rival executives more than receptive to new licensing deals, and more non-original movies could be headed to Apple TV+ soon.
Apple TV+
Apple TV+ is a subscription video streaming service for $9.99 a month that includes high-quality original shows and movies including Best Picture winner “CODA,” popular sitcom “Ted Lasso,” and dramas like “The Morning Show” and “Severance.” Apple TV+ is also home to MLB baseball games on Friday nights and MLS Season Pass.