Apple’s Movie Venture Falters

Apple Inc. (NASDAQ: AAPL) has a significant amount of cash reserves that could allow it to remain in the streaming business indefinitely. However, the question is whether it should continue down this path.

A glance at Apple TV+ reveals a rather limited array of content. While it offers a few movies and TV shows, including minor productions like “Bad Monkey” and “Ted Lasso,” the latter has already concluded its final season. In comparison, Netflix and Amazon Prime Video boast extensive libraries with numerous self-produced shows.

Apple’s approach to the streaming market appears disconnected. According to a recent New York Times article titled “Apple Rethinks Its Movie Strategy After a String of Misses,” the company is reconsidering its strategy. One example cited is the movie “Wolfs,” featuring Brad Pitt and George Clooney. Initially intended for a broad theatrical release, it will now screen briefly in theaters before transitioning to streaming. Even George Clooney seemed taken aback by this change.

Getting into the streaming game late has proven challenging for Apple. Established players like Netflix and Amazon already command significant market share, and other services such as Disney+, Max (formerly HBO Max), Hulu, Paramount+, and Peacock are fiercely competing for a piece of the pie. Many of these platforms, including Disney+, have experienced financial losses despite their efforts.

Apple’s initial strategy was to leverage its extensive user base of 2 billion devices, such as iPhones and iPads, to drive subscriptions. However, this approach hasn’t yielded the expected results. The lack of interest from device owners suggests that Apple may have missed its best opportunity to become a leading streaming service.

Source: 24/7 Wall St., The New York Times