In the fourth quarter of 2020, the majority of Apple TV+ subscribers, 62 percent, said they were on the free trial offer that Apple extended to buyers of its hardware devices, according to research firm MoffettNathan’s Q4 2020 SVOD Tracker report.
What’s worrisome for Apple: 29% of those said they do not plan to resubscribe once the promo period expires; only 30% said they plan to renew at the regular $4.99/month price (and the rest were unsure).
By comparison, 16% of Disney+ users said they access the service via the Mouse House’s promotional partnership with Verizon… Almost half of Disney+ subs on the Verizon promo (48%) said they planned to resubscribe after the free-access period rolls off; just 19% saying they do not plan to renew. The data suggests that roughly 18% of Apple TV+ subscribers plan to churn off the service once their promotional offer ends, versus 3% of Disney+ customers on free plans, the MoffettNathanson report said.
Apple hasn’t disclosed how many Apple TV+ users it has. But it clearly doesn’t want to lose them: The company has extended the free-access period for Apple TV+ customers who signed up through its one-year-free subscription offer through July 2021.
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). Those include breakouts like “The Morning Show” and “Ted Lasso,” but in terms of sheer tonnage, Apple TV Plus is far below the rest of the SVOD field.
MacDailyNews Take: It’s simple: Apple just needs to continue the promotion where customers who purchase a new iPhone, iPad, Apple TV, Mac, or iPod touch can enjoy one year of Apple TV+ for free.
Apple TV+ is yet another incentive to buy an Apple device.
The type of confused customer who wonders, “Gee, should I buy a real iPhone or a fake one?” might opt for the real deal if they know they’re going to get a year of Apple TV+ free, especially when they’ve heard of a Jennifer Aniston / Reese Witherspoon series, and seen that and other Apple TV+ exclusive series and movies scooping up awards.
Apple should run this “Buy an Apple Device, Get a Year of Apple TV+ Free” promo for a few years at least, and keep extending it for current trail users, so that people can become invested in Apple TV+ series and top-line films and change their mind about paying $4.99/month so they can keep watching Ted Lasso et al.
Since the initial launch of Apple TV+ a year ago, Apple has amassed an impressive lineup of original programming. It’s obvious that the company has decided to focus on the usual: Quality over quantity. But, over time the quantity of quality content will build Apple TV+ into a content powerhouse.
Those who can wrap their heads around Apple’s massive cash mountain and the company’s unparalleled ability to generate cash can clearly see who the winner will be. The most talented producers, writers, directors, editors, actors, etc. are attracted to exactly what Apple has and makes in vast abundance: Cash. The king. Like bears to honey, it’s happening already. — MacDailyNews, January 3, 2018
TTK! Prost, everyone! 🍻