Most Apple TV + users don’t pay customers, they get a free promotion

While Apple TV + appears to have some success as a streamer, recent data shows that the platform ended the fourth quarter of 2020 with the majority of its subscribers using the free promotional offer.

If you’re not familiar with the promotion, Apple is offering 1 year of Apple TV + for free when you purchase an Apple device. The company recently extended the offer to apply to purchases made until July 2021. The plan is to introduce users to the streaming service for free and keep them as paying customers once the trial is over.

According to MoffettNathan’s SVOD Tracker Q4 2020 report, 62% of Apple TV + subscribers still use the free trial. Additionally, 29% of these users said they didn’t want to renew their subscription after the free trial period ended. Only 30% intend to keep the subscription at $ 4.99 per month and the rest said they are unsure.

Disney + has a similar free promotional offer for Verizon customers, but the people who accept it make up just 16% of the platform’s subscribers. Of these, 48% say they want to continue their subscription after the promotional offer ends, with only 19% still pending.

While Apple is offering a free year to Apple TV + with the purchase of a new device, it is not an offer that many people will continue to qualify for. There are so many Apple devices that users can buy regularly. And even if they did, they still wouldn’t pay Apple TV + subscribers.

“We remain concerned about future subscriber abandonment if there is a slow device cycle and users choose not to renew themselves,” MoffettNathanson’s team, led by senior analyst Michael Nathanson, wrote in the report. They go on to say that while Disney and WarnerMedia have been “clear on stepping up their respective content offerings, it seems Apple is not yet all-in on making the Apple TV Plus originals a focal point.”

Apple TV + has some original tentpole on the platform like The Morning Show, See, Ted Lasso, Dickinson, The Servant, and others. There’s also quite a bit of star power fueling the shows, including Bill Murray, Jennifer Aniston, Steve Carell, Jason Momoa, Reese Witherspoon, and Oprah Winfrey to name a few.

The streamer also has several new titles in the works, including a Billie Eilish and Justin Timberlake documentary starring Palmer, the story of a former college football phenomenon named who returns to his hometown after spending a spell in prison.

But unlike Netflix, Disney +, and others, there’s hardly a long list of releases every month, and perhaps that prevents people from going all-in on the streaming service, even if it only costs $ 5 a month.

Tmera Hepburn


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