A year ago Apple entered a new space increasingly interesting and important to technology companies, content streaming. Viewers may be curious what exactly Apple is up to in the streaming space, especially when having to justify paying for the monthly subscription.
With incumbent Netflix increasing its monthly subscription fee, and new entrants like Disney+ entering the streaming game, there will come a point when consumers have to choose which platform to pay for or face simply replacing their cable tv bill with multiple subscriptions.
Apple is late to the streaming space, offering far less content than the competition, but as always with Apple, the California company is going its own way.
Apple TV+ in a crowded space
Apple TV+ remains a good price, and when getting the streaming service as part of the Apple One package, it’s a good value. Amazon has a similar model—you’re getting Prime Video included with your Prime subscription which comes with many other benefits. With Prime, it’s hard to see which service is more important to Amazon, the full Prime package including fast delivery, or the streaming platform. For Apple, the original content gives us something to watch on our Apple devices. And by bundling the service with an iPhone or Mac purchase, Apple TV+ becomes a nice gift for the hardware purchase.
Unlike the way Apple changed the music industry, the company didn’t become a label as it has now become a studio. However to date Apple has not bought a significant music back catalog, or a studio library. Apple is starting from scratch.
Apple is well known for keeping its cards close but also speaking plainly and honestly. If Apple were to buy a studio to build up its streaming library, we won’t know until it happens. But what we do know is that the company is focused on original storytelling. Unlike new hardware products, it was hard to avoid leaks related to the new programmes and movies being produced.
Well before the March 25, 2019 announcement that the service was coming, many in the industry were already aware scripts were being written, and productions readied for development. With the service finally launching on November 1 last year, we finally started watching the first few hinted shows. Anticipation was high, and depending on your genre interest, well served.
Original content is king
When Netflix started, they had no original content, but they were smart enough to know that there would be a day when the access to back catalog content became too expense to keep monthly subscriptions affordable, or studios would simply not license their valuable libraries. Netflix used the time wisely to build up their own library of originals to a point that now you can watch Netflix 24 hours a day and still not get through all the content. They probably produce too much content, more than they are capable of marketing enough for the shows to even succeed. Shows don’t get promoted, no one streams them and they’re canceled within fews of release.
We’re now seeing this as studios rush to leverage their most popular content and launch their own streaming services. Disney+ has their own Disney properties, plus Pixar, Star Wars and Marvel. Those properties (or intellectual properties) are gold mines for their stock price. This is also why Hollywood throws all the money behind known blockbusters. Marvel and Star Wars movies are great, but where are the other stories.
The market is changing for the smaller players. Look at Paramount with fewer popular properties, such as Star Trek, and a streaming platform few people are interested in. CBS All Access will be getting a new name in the new year, but Paramount+ may find itself fifth or sixth among the streamer.
One studio that has not looked to build their own streaming platform is Sony Pictures Television. In a way they’re being wise, instead doing the harder job of creating original content. Sony also lost a good deal of executive talent, mostly at Apple’s benefit.
Apple has so far released only a handful of shows and films. After the initial launch, the service has gone quiet as we wait for the renewed seasons and new content. There has been something for everyone, but also maybe not enough of it with shorter seasons and fewer series premiering. If Netflix is producing too much original content, Apple may currently be producing too little. Time will tell as the service ramps up.
While Netflix has build a mostly original library, and Disney+ and Paramount+ are mostly leveraging known successful properties, Apple is nearly only going after truly original content. Apple wants to tell the stories that are not being told, which is similar to how HBO has operated for decades. Quality over quantity.
That’s not to say Apple isn’t trying to create their own expandable properties. Foundation was announced early and to date we have no fixed release schedule. The production is likely to be huge, and if successful, may grow into spin-offs and multiple series.
The future of streaming
First off, what’s going to happen to traditional networks. It’s possibly we won’t see a lot more new channels. At the more niche and speciality, the more likelihood a streaming platform can better serve that audience. Live sports, events and news are the best content for the networks.
That said, those sporting things and events need to be big to attract the audience numbers, or networks need to rethink their advertising pricing. And maybe sports do belong on separate platforms. For recent Olympic Games, the BBC served the most people with multiple streaming channels. NBC had intended their Peacock streaming service to carry the bulk of the Tokyo 2020 Olympics coverage, mostly the smaller events that don’t attract the bigger audiences.
Despite an early lead, Netflix is about to be challenged by the content-king, and we can soon see the Disney+ platform taking the top spot. Amazon is throwing a lot of money at Prime which will likely keep it within the top 5 or 10. Other consolidations in the media landscape are helping other platforms to avoid being small players. But for Apple, it may be too early to tell where it will fit in.
At the end of the day, with too many platforms to choose from, consumers will mostly be the ones to decide with their wallets and purses. Paying for four or five subscriptions a month will become too much. Apple, like Amazon, is wise to bundle the streaming service with other benefits. There may come a day when there are two or three big content-only platforms (Disney+, Netflix and a possibly third), and additional streamers offering bundled subscriptions.
Subscribe to Apple TV+ for $4.99/month as of November 2020