This week, a Bloomberg article showed that Apple is reviewing its strategy for AppleTV + service of betting only on original content. Company executives are beginning to realize that a back catalog may be a good way to win subscribers and compete with Netflix’s and Disney’s giant libraries–while Netflix already has thousands of options, AppleTV + has just over 30 shows and movies documents available to its users.
The company has not yet acquired or licensed any show, movie or series, but it will do so. It is a movement contrary to what Netflix has been doing since the industry pioneer started with catalogs and then bet on original content.
Would the secret to win faithful subscribers be a combination of affordable price, a little bit of what everyone sure likes (back catalog), and a little bit of original content? It can be. But what is clear at this point is that there is no single formula, or winning strategy, to follow in the so-called streaming war.
In terms of price, it is important to note that AppleTV + is cheaper than its competitors ($4.99, almost half the price of Netflix in the United States), in addition to offering a free year for those who buy Apple devices.
Along with the original content, Apple has also been betting on media partners: the latest version of its app, launched in 2019, offers access to other services, such as Starz, Showtime and HBO.
But this approach did not contribute to the loyalty of users. According to Bloomberg, although about 10 million people signed up for TV + in February this year, only half of that number actively used the service.
Disney’s Disney +, on the other hand, reached more than 10 million users on the first day of its launch in the US, at the end of November last year, and has since surpassed 50 million.
In the first quarter of this year, Netflix, in its turn, gained almost 16 million subscribers. Apple does not reveal exactly how many subscribers it has on TV + at the moment, but the results for the first three months of this year show that the platform has contributed to the growth of its service segment, with 23% of the $13.3 million in revenue.