Bernstein analyst Toni Sacconaghi has estimated that Apple TV+ currently has between 20 million and 40 million paying subscribers, generating between $1 billion and $2 billion of revenue per year.
The Bernstein analyst thinks Apple is spending north of $3 billion a year on content, including new programming and sports broadcasting rights, which suggests Apple is losing between $1 billion and $2 billion a year on the service.
He estimates Apple now has about 673 hours of content (not counting sports), compared with 30,000 to 50,000 hours each at Netflix, Amazon Prime Video, and Paramount.
Sacconaghi also noted that almost all of Apple’s programming is original, and generally of high quality, including CODA, which won the Oscar for Best Picture at the latest Academy Awards. “Apple TV+ ‘s focus is clearly on quality over quantity, consistent with Apple’s brand,” he wrote.
Sacconaghi said it seems clear that Apple TV+ will never be material to Apple’s financial performance; he points out that Netflix, with more than 200 million subscribers, has a market cap of $82 billion, or less than 4% of Apple’s $2.3 trillion valuation. So why is Apple doing it?
“Apple’s objectives for its services offerings are typically twofold,” Sacconaghi wrote. The first is to generate financial returns, and the second is to strengthen Apple’s broader ecosystem.
MacDailyNews Take: The vast, vast majority of Apple’s “about 637 hours” is as good or better than Netflix et al.’s best 637 hours.
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Some content on other platforms is what they used to call ‘shovelware’ in the software industry.
As long as the original content provided by Apple+ doesn’t promote left wind ideology, I will watch it. Unfortunately I have had to quit watching many of their original productions because I don’t believe it’s appropriate to alter history to fit a certain narrative. Those who don’t know and understand true history are doomed to repeat it. We will never progress as a society with this false narrative being fed to young gullible minds.
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Apple TV+ is awesome. We were blessed with Severance, and I’ve got a long list of great shows to watch… when I have time 😀 Awesome content at a dirt cheap price. Well done Apple.
Now about those exclusive Apple Arcade+ games…