Majority of Apple TV Plus Subscribers Aren’t Paying For Streaming Service
In a year that has been major for the streaming space, Apple TV+ has had a few hits, but it hasn’t translated to paying subscribers. According to a study by MoffettNathanson, 62 percent of Apple TV+ subscribers were on the free promotional offer that Apple gave to customers who bought new devices. Not only that, but 29 percent of those users revealed they had no plans to resubscribe once the promo period is over. However, 30 percent said they would be willing to pay the $4.99/month for the service.
On the other hand, MoffetNathanson found that only 16 percent of Disney+ users get the service via the streamer’s promotional partnership with Verizon with 48 percent of those users planning to resubscribe once the promo period is over. Roughly 23 percent of HBO Max subscribers said they get the service via AT&T’s promotions.
Apple has extended their free offers twice since launching in Nov. 2019. Last October, the company announced they extended all subscriptions set to expire by end of January through February 2021. Apple then amended that offer recently and those customers will have the service free through July 2021 instead.
Part of the problem may be the fact that Apple TV+ simply doesn’t have the robust library that service’s such HBO Max and Disney+ have nor does it have the brand recognition of Netflix in the streaming space. As it stands, Apple TV+ houses 55 originals—11 drama series, six comedy series, 13 nonfiction series, 11 films and 14 family series and specials, Variety reports.
While the data may seem unfavorable for Apple TV+, it’s possible Apple is peddling the service in order to push sales for their devices. “If the Apple TV+ free benefit has made even a small incremental difference in moving the needle there, it’s possible that the company can rationalize the cost of the investment in Apple TV+,” Variety stated.