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Market Insight

Apple TV+ makes global debut; emphasising high growth subscriber acquisition strategy

November 01, 2019  | Subscribers Only


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Apple TV+ is the first of the four upcoming direct to consumer streaming services to launch from media conglomerates Apple, Disney, Warner Media, and Comcast. Apple’s new streaming service strategically launches in over 100 territories 11 days before Disney+ comes to its five initial markets on 12th November.

At launch, Apple TV+ is priced at $4.99 per month (or local currency equivalent in most major markets), making it one of the most affordable services available in any given market across the world. The streaming service also comes bundled free for one year with qualifying Apple device purchases. In addition, Apple is also offering the TV+ service free for one year to any student Apple Music streaming subscribers. Apple TV+’s competitive pricing, bundled device offer, and Apple Music’s student streaming bundled offer all point to Apple’s high-volume subscriber acquisition strategy. These offers are a means of getting customers into their ecosystem rather than working to break even over the next five years. Because Apple has successful device revenue streams outside of the media space, they have more flexibility to take on high growth strategies like these than more traditional media companies do.

Despite this, Apple is increasingly investing in its growing consumer services division. Apple’s content strategy for TV+ revolves around very few but very high value titles, aiming to generate consumer interest akin to that of Netflix’s original content. Apple is unlikely to begin licensing content to boost the back catalogue of TV+, especially with movement of major content producers to direct-to-consumer services. Apple will therefore be relying on the value of this content as well as its gradual release schedule to keep consumers subscribed to the service long term.

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Geography
USA World
Organization
Apple Inc.
Research by Market
Media & Advertising
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