Apple TV+ Eyes China Rollout as Streamers Continue to Seek International Audiences
Streaming platforms are finding American streaming audiences increasingly taped out, and are looking for new markets to try and grow their customer bases.
Apple has its traveling cap on! A new report from The Information says that Apple is considering launching many of its subscription services, including its streamer Apple TV+ in China. The report suggests that Apple is boosting the number of team members responsible for other subscriptions like Apple Music in recent years, and is actively recruiting Chinese executives who are familiar with the tight restrictions the government places on media content in the country. An expansion to China by Apple TV+ would follow a pattern of recent international rollouts by other streaming services, as providers seek alternatives to an American customer base that appears to provide limited opportunities for subscriber growth.
- China’s population of more than 1.4 billion people provides a tantalizing marketplace for streamers, regardless of government regulation.
- Between 85% and 95% of Americans have at least one streaming subscription according to most surveys, but that number has remained flat for several years.
- Paramount, Warner Bros. Discovery, and Amazon have all made concerted efforts to grow their streamers internationally of late.
Apple CEO Tim Cook is planning an upcoming visit to China with top company executives, and the launch of Apple TV+ in that country could very well be one of the topics discussed. Government censorship has made it difficult for American-based streaming platforms to enter the Chinese marketplace, all but shutting them off from the 1.412 billion Chinese customers.
Apple, of course, would be subject to these restrictions too, which is why it is seeking executives with experience at Chinese media firms who are knowledgeable about what it takes to operate in such a restrictive market. The Information reports that a China-based Apple official had been telling colleagues as early last year that the company was pursuing potential partners to help run Apple TV+ and ensure government compliance, but that it wasn’t clear how close an actual deal was.
Apple recently reported that it had over 1 billion total customers on its various subscription services, though the company does not break out subscriber totals for its services individually. Estimates through the years have placed the Apple TV+ subscriber base at around 40 to 50 million global customers, but expanding to China would allow the streamer to grow substantially, particularly since it would not have competition from Netflix, Prime Video, Hulu or any other American-based streamers.
Why Are Streamers So Focused on International Expansion?
Many American-based streaming services are casting their eyes across the world’s oceans these days. A quick look at the maturity of the streaming market in the United States shows why; a recent survey from Forbes found that 99% of American households pay for at least one streaming service, and the vast majority of studies agree that a bare minimum of 85% of viewers in the U.S. have a streaming subscription.
That means there simply aren’t that many more new customers in the U.S. to reach. The rising cost of streaming is conditioning American consumers to sign up for streamers to watch a limited range of content, then cancel once that content has been viewed. Providers need more customers who will stick by their streamers in the long haul, which is why they’re trying to find new subscriber bases in international territories.
Paramount+ is expanding its ad-supported tier to Australia and Canada over the course of the spring, and will also roll out an ad-free plan in Europe beginning in March. Europe will also see Max replace HBO Max starting in May as Warner Bros. Discovery tries to grow the footprint of its flagship streamer.
Amazon is preparing to roll out a slate of 69 locally-produced TV series and movies in India, but none of these services has made an attempt to break into the Chinese market as of yet. Apple appears to be maneuvering to do just that with Apple TV+, becoming the latest streaming provider to cast its eyes on a large international customer base.
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.