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Apple TV+ Has Only 38% Of Users Paying For Subscriptions


Nergal
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New research numbers show Apple TV+ isn’t doing so well acquiring paying subscribers, as a majority of users on the platform are on free trial periods. The service was heavily touted by Apple leading up to its release in November of 2019, but it failed to catch on culturally in a 2020 that also saw the rise of Disney+ and HBO Max. As the streaming wars continue to rage, Apple TV+ could be in trouble.

The streaming service marketplace is becoming nearly as crowded as the bloated cable TV world it initially rose out of. Competition over back catalogs, original content, prestige Oscar-bait, price points, and more have ramped up fiercely over the past two years, as newcomers contend with vanguards of the industry like Netflix and Hulu. While some have been able to differentiate themselves by targeting specific demographics (families for Disney+) or embracing popular franchises (DC for HBO Max), others have been left with few distinguishing features and no established foothold in the marketplace.

It seems Apple TV+ is in that latter category, as a new study from research firm MoffettNathan (via Variety) claims just 38% of the platform’s users are actually paying for subscriptions. The other 62% are on free trials, primarily temporary subscriptions that come bundled with new Apple device purchases. The study also found only 30% of current free-riders plan to continue their subscription once they have to pay for it. By comparison, the same study found only 16% of Disney+ users and 23% of HBO Max users enjoy the platforms for free.


Those numbers are discouraging at best and dooming at worst for Apple TV+. The platform has attempted to build credibility as a prestige source of quality dramatic and comedic content, but that clearly isn’t doing enough to carve out a spot in the cutthroat streaming marketplace. The Morning Show, which was meant to be the standard-bearer for Apple’s original programming, spent $15 million per episode and hired a star-studded cast, only to receive a middling critical reception upon release.

There was once a time when a high-budget original drama was enough to get some interest in the streaming space, but the days of House of Cards and The Man in the High Castle are in the past now. The streaming landscape is increasingly about branded content, franchise development, and deep libraries of movies and shows – none of which Apple has succeeded in. If Apple TV+ is to survive as anything more than a purchasing bonus, it may have to make some major changes very soon.
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