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Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers

Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers

1/22/2021 9:54:00 PM

Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers

Apple has said it wants to bulk up revenue from services — including Apple TV Plus, which is just over one year old. But new research suggests that the tech giant’s entry into the so-called &…

to customers on the telco’s best wireless, video and internet plans (and for the top packages, HBO Max is a permanent perk).Almost half of Disney Plus subs on the Verizon promo (48%) said they planned to resubscribe after the free-access period rolls off with just 19% saying they do not plan to renew. The data suggests that roughly 18% of Apple TV Plus subscribers plan to churn off the service once their promotional offer ends, versus 3% of Disney Plus customers on free plans, the MoffettNathanson report said.

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Apple hasn’t disclosed how many Apple TV Plus users it has. But it clearly doesn’t want to lose them: The company hasextended the free-access period for Apple TV Plus customers who signed up through its one-year-free subscription offer through July 2021

. The 12-months free of Apple TV Plus remains available to customers who buy a new iPhone, iPod Touch or Mac.“We remain concerned about future subscriber churn if there is a slow device cycle and users choose not to renew on their own,” the MoffettNathanson team led by senior analyst Michael Nathanson wrote in the report. While Disney and WarnerMedia have been “clear about strengthening their respective content offerings, it seems Apple is still not all-in on making Apple TV Plus originals a focal point.” headtopics.com

A big issue for Apple TV Plus is its very limited content lineup, compared with the thousands of titles available on other SVOD services. Currently, Apple TV Plus offers a total of 55 originals (11 drama series, six comedy series, 13 nonfiction series, 11 films and 14 family series and specials).

Apple has a slate of originals in the pipeline, but that’s still not in the same league as Netflix, Disney Plus or HBO Max. Upcoming releases on Apple TV Plus include Season 2 of Ronald D. Moore’s “For All Mankind” (Feb. 19); andAnthony and Joe Russo’s film “Cherry” starring Tom Holland

 as an addict who resorts to bank heists to pay his debts (Feb. 26).Meanwhile, the percentage of U.S. consumers who said they use Apple TV Plus declined from 10% in November 2020 to 8% in December, per the MoffettNathanson report. In December, 72% of respondents said they use Netflix, followed by Amazon Prime Video (52%), Hulu (39%), Disney Plus (31%) and HBO Max (13%).

For the SVOD tracking study, MoffettNathanson enlisted market-research and consulting firm HarrisX to conduct surveys of 19,435 respondents between October-December 2020.Other findings from the MoffettNathanson/HarrisX study:Streaming services penetration of U.S. households was 77% at the end of 2020, up five percentage points year-over-year, attributed to the country re-entering some stage of self-quarantining this winter because of the COVID pandemic. headtopics.com

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The average U.S. pay-TV household now subscribes to an average of 3.33 SVOD services while non-pay-TV homes average two. That “speaks perhaps to the impact of income on cord-cutting, with pay-TV homes being more willing/able to invest in more video products,” the MoffettNathanson analysts said.

When subscribers were asked to name what content they watched recently, 43% of Disney Plus customers cited original series, and 38% of Netflix and 34% of Amazon Prime Video customers saying the same. Hulu subscribers reported just 13% of their viewing was original TV shows and for HBO Max it was 12%. Meanwhile, 84% of both Hulu and HBO Max customers reported that acquired programming was what they most recently watched, compared with 56% for Netflix, 51% for Prime Video, and 49% for Disney Plus.

Read more: Variety »

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It’s bc their content blows. Stay_Cruel Apple TV+ can’t compete. I have alarm set to remind me to cancel before my free trial is over. They have the best comedy across all platforms: Ted Lasso is outstanding! There is literally nothing worth paying for. They didn’t get nominated let alone win many awards, didn’t receive that much critical praise, and it’s not buzzing among the zeitgeist.