In an increasingly competitive streaming context, Apple is considering a new strategy for its Apple TV+ service. The Cupertino giant, despite quality productions and positive reviews, is struggling to make its streaming service profitable and is preparing to adopt a more traditional approach to content distribution.
A new licensing strategy for films
Apple recently recruited Maria Ines Rodriguez, a Disney and NBCUniversal alum, to expand distribution of its original content. The objective is clear: to allow the distribution of Apple TV+ films on other platforms, including foreign television channels and movie rental/purchase services. This strategy will initially only concern films, with TV series remaining exclusive to the platform.
This decision comes after several strategic adjustments, such as the recent cancellation of the theatrical release of the film Wolfs and a shift towards less expensive productions intended for streaming. Bloomberg reports that Tim Cook and head of services Eddy Cue have pushed the Apple TV+ team to reduce costs and improve the service’s financial performance.
A paradigm shift in the streaming industry
This development marks a significant turning point in Apple’s approach, which joins other major players in the sector. Warner Bros. Discovery, Paramount and Disney have already increased the number of titles sold to third parties, while Amazon is also starting to license some of its content to other networks and streaming services.
Apple’s platform suffers in particular from a visibility problem, despite the recognized quality of its productions. As pointed out by a popular comment that appeared on 9to5mac :
I’ve heard a lot that Apple TV+ has a marketing problem. There are many great shows that no one watches simply because they aren’t aware of them. I use the TV app all the time, so I always see what’s on and upcoming, but there seems to be a lack of online presence when it comes to promoting certain specific shows.
This new strategy could allow Apple to:
- Generate additional income
- Increase the visibility of your productions
- Reach an audience that is not yet subscribed to TV+
- Strengthen its presence on international markets
Apple has already begun to expand the distribution of TV+ by offering it through Amazon and Canal+ in France, and this new licensing approach represents a logical extension of this open strategy.
