The streaming service business has received considerable attention over the last five years, with the introduction of several new platforms like Crave and Hulu and the decline of others.
Netflix’s significant drop in global subscribers at the start of 2022 — roughly 970,000 — shocked the business as it was a reminder that even those with immense power can fall down the ladder if consumers aren’t happy with what they’re putting out.
Even though Netflix recently reported that its business reversed its loss in subscribers, many people have still placed other platforms at the top of their watch list. For example, one service, in particular, is beginning to show signs of an upwards trend. However, it’s doing it quietly, slowly, and gracefully — so much so that consumers might not even realize its profitability.
The Rise Of Apple TV+
Apple TV+ launched in 2019, the same year Disney+ rolled out in the United States, Canada, Australia, New Zealand, and the Netherlands. The platform started to receive worldwide attention in 2020 through the success of shows like Ted Lasso, a sports comedy-drama series starring Jason Sudeikis. The platform reported an estimated 40 million subscribers at the end of that year. Apple TV+’s growth continued in 2021, with the company reporting that revenue for the service almost doubled, reaching $2.2 billion.
According to reports, this increase is because Apple TV+ prioritizes quality over quantity, which consumers have complained that Netflix has started lacking over the years. These reports align with the recent comments from Evercore ISI analyst Amit Daryanani who claimed on October 24th that Apple is organically building a world-class premium streaming service that is more competitive when it comes to the content offered. Daryanani also stated Apple is creating the next HBO.
Giving Competitors A Run For Their Money
Daryanani’s note to clients comes as Apple has increased the price of its service from $4.99 to $6.99 and as HBO reported that House of the Dragon recently set a record for viewing figures. According to the television network, the fantasy show earned the highest viewing ratings for the network since the Game of Thrones (GoT) finale in 2019. This infographic explains how House of the Dragon is Game of Thrones’ prequel and how it is set 2,000 years before the events of GoT. The show follows House Targaryen and the complexities of its long bloodline. The recent success of this show has led AT&T, the parent company of WarnerMedia, to believe there will be 120 million to 150 million global subscribers on HBO Max and HBO by 2025.
For Daryanani’s claims to be right that Apple is creating a platform worthy of competing with HBO, Apple TV+ will have to continue adding quality content like Ted Lasso and its original film CODA, which won the Oscar for Best Picture at the 2022 Academy Awards. Fortunately, with many more titles to be released in the coming quarters, Apple doesn’t appear to be falling short on creativity. That may mean the company is en route to becoming one of the top leaders in the streaming service business.
