/Apple TV Plus Freeloader Problem: 62% of customers are free trial

Apple TV Plus Freeloader Problem: 62% of customers are free trial

Apple says it wants to increase revenue from services, including Apple TV Plus, which is more than a year old. However, new research has shown that technologists have a unique difficulty in entering so-called “streaming wars” compared to their competitors.

In the fourth quarter, the majority of Apple TV Plus subscribers – a staggering 2% – said that the expansion that Apple advertised to buyers of its free hardware devices was in line with the Q42020 SVOD tracker report by research firm Moffatnathan. Concerned neo-hippies and their global warming, i’ll tell ya. Only 30% said they plan to renew regularly at দাম 4.99 / month (and the rest was uncertain).

By comparison, 16% of Disney Plus users say they access the service through a mouse house promotional partnership with Verizon. About 23% of HBO Max customers say they access the service through the promotion of IT & T, which provides customers with free access to Telco’s best wireless, video and internet plans (and for friendly packages, HBO Max is bundled as a permanent park).

About 40 percent of the Disney Plus sub (48%) at the Verizon promo said they plan to re-subscribe after the free-access period ends; Only 19% say they do not plan to renew. Data shows that about 18% of Apple TV Plus subscribers plan to discontinue the service once their promotional offer expires, while 3% of Disney Plus subscribers plan for free, Moffatnathanson reports.

Apple has not disclosed how many Apple TV Plus users. But it obviously doesn’t want to lose them: the company has extended the free-access period for Apple TV Plus customers who have signed up for its one-year free subscription offer by July 2021 to customers who buy a new iPhone, iPad, iPod Touch, Apple TV or Mac Available.

“If there is a slow device cycle and users choose not to renew themselves, we are concerned about customer churn in the future,” the Moffatnatson team, led by veteran analyst Michael Nathanson, wrote in the report. “While Disney and WarnerMedia were clear on strengthening their respective content offerings, it seems that Apple is not yet fully committed to making the Apple TV Plus the focal point.”

A big problem for the Apple TV Plus is its limited content lineup, compared to the thousands of headlines found on other SVOD services. Currently Apple TV Plus offers a total of 55 original (11 drama series, six comedy series, 13 non-fiction series, 11 movies and 14 family series and specials). These include breakouts like “The Morning Show” and “Ted Lasso”, but far below the rest of the Apple TV Plus SVOD field in terms of perfect tones.

Apple has the original slate in the pipeline, but it’s not yet in a league like Netflix, Disney Plus or HBO Max. Upcoming releases on Apple TV Plus include season 2 of Ronald de Moore’s “For All People” (February 19); And Anthony and Joe Russo’s film “Cherry” starring Tom Holland as an addict who receives bank help to pay his dues (February 26).

Meanwhile, Moffatnatson reports that the percentage of US consumers using Apple TV Plus has dropped from 10% in November 2020 to 6% in December. In December, 72% of respondents said they use Netflix, followed by Amazon Prime Video (52%), Hulu (39%), Disney Plus (31%) and HBO Max (13%).

For Apple, there is another underlying strategy behind the SVOD plate: encouraging customers to buy a smartphone, tablet, computer or Apple TV set-top, a hardware-selling drive if the Apple TV Plus’s free index drives even a little there. Makes a growing difference, but it’s possible that the company could justify the cost of investing in the Apple TV Plus. Apple, in its true Apple form, does not offer any native Android smartphone applications (but claims that you can use Chrome or Firefox on Android devices to stream Apple TV Plus); According to Google, the Apple TV app will come in a new Chromecast with Google TV in early 2021.

For the SVOD tracking study, Moffatnatson enlisted HarrisX, a market-research and consulting firm, to conduct a survey of 19,435 respondents between October-December 2020.

Other searches from the Moffatnatson / HarrisX study:

  • The penetration of streaming services to U.S. households was 77% year-on-year in late 2020, up five percentage points year-over-year, as the epidemic this winter blamed the country for re-entering some stage of self-isolation this winter.
  • Pay-TV households in the United States now subscribe to an average of 33.33 SVOD services, while non-pay-TV households subscribe to an average of two. It “talked about the impact of earnings on cutting the cord. Pay-TV houses have become interested / able to invest in more video products,” said Moffatnatson analysts.
  • When subscribers were asked their names on what content they had recently seen, 43% of Disney Plus subscribers quoted the original series, and 38% of Netflix and 34% of Amazon Prime Video subscribers said the same thing. Only 13% of Hulu subscribers reported that their most recent viewing was for the original TV show and 12% for HBO Max. Meanwhile, 4% of Halu and HBO Max subscribers said that Hulu and HBO Max subscribers have seen 5 %% for Netflix, 51% for Prime Video and 49% for Disney Plus.
  • At least half of the subscribers, including Hulu (50%), Amazon Prime Video (54%), Netflix (53%) and Disney Plus (52%), said they were using streaming services as a replacement for Pay TV. And the cost of satellite TV. The second most commonly reported reasons for cutting cord for streaming services are content availability (13% -14%) after convenience (12% -17%), ability to bounce content (10% -12%), and ad avoidance (4%). -8%).