Apple TV+ Could be at Risk During Production Shut Downs


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Apple TV+ may need to reconsider it’s business model, according to one analyst. With its content library solely made of up of originals, it may struggle to stay afloat during a time when production is limited or even shut down.

According to new data from Wall Street analyst MoffettNathanson, just 7% of the 8,500 homes surveyed had Apple TV+, down from 8% in May. With a low percentage like that, even the loss of 1 point can be telling and detrimental. Put that in comparison to the 73% of respondents who subscribe to Netflix, and it reaffirms just how big of a powerhouse the streamer really is. Survey results show Amazon Prime is up 1% and now sits at 52%, while Hulu remained unchanged at 36%. Disney+ is now at 28% up from 27%.

“The Apple TV Plus data points should force Apple to reconsider their [SVOD] strategies and options at this point,” Michael Nathanson wrote in a note.

While Disney+ showed a small increase from May to the present time, the Mouse House had an 18% drop in numbers over the recent quarter. Disney+ has pulled back it’s free trial in an effort to get more subscribers and keeps trying to release reimagined original content to stay fresh even during the production shutdown. Like that time it just pulled bits and pieces from its existing library and called it a new release. Even its latest success, the filmed version of Hamilton, was shot in 2017. Luckily, the Broadway hit generated a boost in app downloads for the streamer that weekend.

Nathanson attributes Disney+’s recent falling subscriber count to its difficulty to churn out fresh content during the pandemic. Viewers will tune into new episodes of The Mandalorian as long as Disney+ is able to keep releasing new ones. But how many times can viewers rewatch a 2 hour and 40-minute musical, or animated classics from their childhood where they already know what happens?

“In short, both services are in danger of losing momentum during the current production shutdown,” Nathanson wrote about Apple TV+ and Disney+.

It will be interesting to see which streaming services will come out on top of this pandemic and if others take a blow that’s too hard for recovery.

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