Apple is Buying Content Aggressively to Challenge Netflix

When Apple launched Apple TV+ last year, the company announced it clearly that its service will comprise only original services. It has created an enormous buzz and made huge celebrities like Jason Momoa and Jennifer Aniston, to talk about their engaging and interesting TV series which premiered on Apple TV+. However, the catalog was not going so back, and now the streaming service provider is thinking of changing.

According to the report, Apple has stepped ahead to purchase off the air movies, shows, and many other types of content to provide more engaging and interesting content to its uses. This will definitely become more compelling reasons for entertainment lovers to subscribe to the Apple TV + service.  

Apple is buying older content for its streaming service, Apple TV+, to enhance its efforts and give tough competition to its competitors Netflix, Disney+, Hulu, and many others. The tech giant is premiering only Apple’s original TV shows and movies presently, but not the streaming service has talked with the Hollywood executives about licensing some of the older content which they own.

Want to Have Deep into Why Apple Consider to Purchase Old Content: Have a Look Here!

The move of the company represents a subtle strategy for Apple TV+, which was recently launched with the aim of providing original content to the users. Since it was launched, the company only kept a focus on providing original shows to the subscribers and never considered acquiring any of the blockbusters or franchises for its back catalog.

But now the news is streaming on the air that Apple TV+ will provide users with a mix of new and old shows. The same formula was implemented by its rivals like Hulu, Disney+, Netflix, and many more.

It is found that Netflix streaming service offers thousands of content to the users to choose from compared to Apple TV+. TV+ has launched around 30 original shows and movies on its platform. One of the most notable programs includes The Morning Show, which features Jennifer Aniston and Reese Witherspoon, and Defending Jacob, featuring Chris Evans.

But TV+ is quite cheaper than most of its rivals, this streaming platform costs around US$4.99/month while people with Apple devices can use this platform for free for one year.

Steered Clear

Apple has steered clear that it will buy some of the shows like Seinfeld, which was previously launched on Netflix, or will recently launch on HBO Max. Instead of building its own library, Apple is reportedly relying on the media shared by other media partners. The company’s latest TV app, Apple TV+, which was launched previously, possesses the built-in subscription capabilities for services like Showtime, Starz, HBO, and many others.

Still, this mixed approach offered the company excellent results, which they haven’t imagined to leverage. More than 10 million people opted for TV+ subscription by February, while it was also measured that only half the number from the active users leverage the service.

Compared to this Disney+ has grasped a much better result as it was measured that more than 10 million prefer to use the platform within a day of its US launch and has experienced great results with more than 50 million subscribers. While Netflix gained around 16 million customers worldwide in the first quarter of 2020 alone.

Moreover, it is reported that Apple TV+ has proven to be very beneficial for the company as it helped the company to grow its services segment. Recently tech giant’s Instagram post shows a quick glimpse of the older movie options from an American Film Institute (AFI), which will be sooner be launched on a streaming platform.

Apple CEO Tim Cook cleared that the older content which their post shows is not what TV‌+ is about, he responded to it when he was asked that why TV+ brought the license to “Friends,” which was currently launched on Netflix and Hulu, further adding he said that the service is all about providing original programming to its viewers, thus it doesn’t feel right for the company to just go out and take a rerun.

Streaming Services by The Numbers

Most of the streaming platforms prefer to increase their spending on original content, these platforms include Hulu, Amazon Prime, HBO, and Netflix.

Streaming Services by the Numbers

There is not a single doubt that most streaming platforms consider providing their customers with engaging and original content to make them loyal to their streaming platform. A wide range of original content is provided to subscribers by Hulu, Amazon, Netflix, and many other streaming platforms.

Launched in November 2019 Apple TV+, has spent a huge amount on original content, it has spent around as much as Amazon Prime Video spent during 2019, this amount was around $6 billion, according to the source.

Apple TV+ has more than 33 million users who are quite higher than its rival Hulu’s, but the majority of subscribers are not opting for subscription plans; they just enjoy the free service provided by the streaming platform. Currently, more than 30 original movies and shows are owned by Apple TV+ under its catalog. As the report notes, it costs around $4.99 per month, ‌which indicates that Apple TV‌+ costs half the price compared to a standard Netflix subscription.

One of the other advantages that Apple TV‌+ can leverage is that it provides completely free service to those who make purchases of Apple’s device. And it has much to offer to students as students who subscription to ‌Apple Music‌ for $4.99 per month can leverage the access to ‌‌Apple TV‌‌+ that also without paying any additional charge, so it can be said that company provides them with the service even before it has been exposed to its television service.

Apple has always avoided making the purchase of old shows and has hosted its individual and unique service through TV apps in the form of ‌Apple TV ‌Channels, this channels included SHOWTIME, HBO, Starz, and EPIX. However, according to sources, this approach has not yielded to show mixed results and has steeped to buy the old content.

What’s Next for Apple?

The COVID 19 outbreak has also impacted Apple to a great extent, there is a great delay in the launch of its new iPhone, though it was set to release during the holiday session. Apple was also ordered to close its retail store around the globe due to this deadly virus.

Apple is also leveraging benefited from the people who are working from the comfort of their home during this pandemic. As people who are forced to work from home (WFH) are preferring to use many of the devices and technologies which Apple sells. CFO Luca Maestri responded that they have generated operating cash flow of around $13.3 billion during the period and have generated around $2.2 billion over a year ago.

Apple has also reaffirmed that it has paid its quarterly dividend, which was raised by 6%  (that is around $0.82 per share). It has also experienced an increase of $50 billion to its share buyback program.

Besides all that, most high-profile TV shows are highly sought and cost a substantial amount of money. Apple TV + has famously kept the incredible hit and has gained huge popularity among the subscribers during the time. One of the biggest things which are making Apple TV+ irresistible streaming service it’s its original content.

 Some of the episodes grasped huge popularity among the users in lesser time, and subscribers are waiting eagerly for the second season. If Apple can continue to make engaging original content, then definitely more people will turn to its subscription plan, thus the company needs to invest in original content rather than investing in old content.

Post by Alphanso Tech

Created in 2013, Alphanso Tech is a leading IT Consulting company with a presence in the USA, Canada, and India.We are a trusted and leading service provider to many top-tier companies in the area of Custom WordPress Development , Web Application Development , iOS App Development , Outsourcing Services, Online Marketing and many other related activities.

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