While HBO Max, Disney+, and Peacock have been grabbing headlines recently, Apple gave us all notice that it, too, plans to be a relevant player in the streaming world in both original content and service bundling.
In recent months, there’s been a ramp up of exclusive content commitments by Apple with new signings intended to lure more viewers to the platform. Beyond Greyhound, starring Tom Hanks, and Emancipation, starring Will Smith, Apple TV+ has signed a first-look movie deal with legendary director Martin Scorsese. The news came shortly after Apple had already signed a first-look deal with Leonardo DiCaprio.
“Original content has been a cornerstone of Apple’s strategy for Apple TV+ from the beginning,” said Brett Sappington, VP at Interpret. “While expensive and risky, originals provide differentiation from others in the market. It also provides Apple with control. Many of its content deals seem to be designed with the Apple brand in mind – high profile, A-list talent that any company would love to have promote its products to consumers.”
Beyond partnerships with some of the best talent in Hollywood, Apple has bolstered its push by teaming with other networks to offer more content at a lower total price to viewers. In the first bundle being offered on Apple’s service, Apple TV+ subscribers can now opt for CBS All Access and Showtime for just $9.99 per month. Both CBS All Access and Showtime were already available in the Apple TV channels lineup, but considering that Showtime costs subscribers $10.99 monthly and CBS All Access subscriptions go for $5.99, Apple is banking on the bundle approach as too irresistible for content-hungry fans – not unlike Disney+ offering a bundle with ESPN+ and Hulu.
Interpret’s New Media Measure shows that Apple TV+ clearly has room for growth with the bundle method. Among current Apple TV+ subscribers, only 7% subscribe to Showtime streaming, and 13% subscribe to CBS All Access.