Apple TV+ launched five years ago. Although it is home to a small but high-quality content library, the math to sustain the streaming service isn’t perfect. Even with thousands of awards, acclaimed TV shows, and the adoration of many Apple aficionados, the company might be planning a strategic shift in how it handles its movies.
According to Bloomberg, Apple wants to license its films to other companies, such as foreign TV networks and stores, where viewers would be able to rent or buy them. For now, Apple TV+ original shows will continue to be exclusive to its platform. Still, the company might start offering movies such as Wolfs, Napoleon, CODA, and others elsewhere in the future.
Bloomberg’s Lucas Shaw had this to say in his Screentime newsletter:
Chief Executive Officer Tim Cook and services boss Eddy Cue have pushed the team overseeing Apple TV+ to lower costs, improve the financial performance of the service, and deliver more hits. The company has spent billions of dollars on original films and TV shows and has received strong reviews and praise from critics. Yet few of its titles have attracted a large audience and its streaming service doesn’t make money.
This might be the first step to Apple actually making its streaming service profitable. A few weeks ago, the company started offering Apple TV+ as a standalone channel on Prime Video. While the Apple TV app offers the same functionality for several streaming services, Apple thought it would be a good idea to be in Amazon Prime’s spotlight.
Other companies have already used this strategy. Warner Bros, for example, offers some HBO content, which is available on Max, to Netflix and other services. If Apple follows the trend, it could make its movies more profitable by licensing them to other platforms.
Even though Apple keeps pushing for original content and bundles with the Apple One subscription, the service isn’t as nearly as successful as Apple’s music streaming service. The company has also cut the budget for several productions as it defines a new era for Apple TV+.
Could this be the beginning of the end of the service, or is it just a tweak of the strategy?
