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Apple TV+ wins Netflix’s audience with a simple trick

When Apple TV+ launched in November 2019, the platform received a lot of criticism for not having any franchise movies or series that were enough to attract attention. It has been compared to other streaming platforms such as Netflix and Disney+, which have a huge content store.

At that time, the Netflix package was three times more expensive than Apple TV+, but hundreds of times more shows. Apple insists they are not directly competing with Netflix, instead, they focus on quality over quantity and gradually build up the catalog over time.

In the spring of 2022, Apple TV+ took home the first Academy Award for best screenplay premiered on a streaming platform, beating out Netflix, Amazon and Disney. Popular shows like “Ted Lasso” keep Apple’s platform in the limelight, but it’s the Oscar-winning film “CODA” that cements its status among its competitors.

In terms of size, category, user base or financials, Apple TV+ is nothing in the vast streaming industry. However, with each company jostling each other for every minute of their audience’s daily lives, Apple TV+ presents a threat to watch out for.

The numbers

Apple TV+ has a total of 120 movies, documentaries, and TV shows as of April 2022. Many shows have 2 or 3 seasons, enough for one viewer to watch for several months. Compared to Netflix, though, it’s just salt in the pool. Netflix has more than 2,200 TV shows and about 4,000 movies. It is not difficult to understand that the platform is leading the streaming race with a strategy of buying everything it can.

Despite its modest content, as of May 2021, Apple TV+ is said to have around 40 million active users. Apple doesn’t release official numbers, but the user base tends to increase thanks to the popularity of new content.

Apple TV+ wins Netflix's audience with a simple trick - Photo 1.

Apple TV+ adds new shows every month.

Analysts believe Apple spent about half a billion dollars on marketing in 2021, well below Netflix’s $1 billion figure. Apple is also said to spend nearly $6 billion a year on content, a third of that of Netflix ($17 billion).

Prize

Apple always takes every opportunity to “show off” its achievements. Every news about Apple TV+ comes with awards and nominations. As of April 2022, the company said it had 244 awards and 961 nominations.

Netflix, of course, is no less competitive, but has not announced specifics. Based on data on awards ceremonies, it can be seen that this “big man” outperforms Apple in terms of Acadamy Awards, Golden Globes, Primetime Emmys or Creative Emmys. However, in terms of proportions, Apple TV+ has every right to be proud.

For example, Netflix produces about 1,500 original movies compared to Apple’s 38, but only 2 more Oscars than Apple. Apple is again the first streaming platform to win Best Screenplay with CODA. Most of Netflix’s awards revolve around “The Crown” and “Queen’s Gambit”, and Apple TV+ is “Ted Lasso”.

Prizes are only one part of streaming, but they are deeply ingrained in potential customers. People will love Apple TV+ more if this is where they see Emmy or Oscar winning movies. If Netflix continues to raise prices without increasing benefits, users can choose to walk away.

Barriers to entry

Apple cannot overtake Netflix overnight, but it is working every day with new content, while still maintaining the $4.99 package. It is assumed that most homes do not have room for another streaming service, other than Netflix, Disney+, HBO Max. However, with low fees and easy registration (just an Apple ID account), Apple has lowered the barrier to entry to the platform.

Moreover, Apple also introduces other service packages. As a result, Apple customers can use Apple TV+ even if they are not directly looking for it. April 2022, Netflix 4K streaming package costs 20 USD/month, equal to Apple One Family package, including Apple Music, Apple TV+, Apple Arcade and 200GB of iCloud storage for a family of 6.

Apple TV+ wins Netflix's audience with a simple trick - Photo 2.

Streaming market share in the US in the second quarter of 2021

People won’t dismiss Netflix because of Apple One, but can choose to use both and indirectly use Apple TV+. As such, the time spent on Netflix may be less. This is exactly the problem Netflix is ​​facing. The company also grapples with other questions such as strategy changes, price increases, new content or sharing accounts.

Future

The streaming industry is at a crossroads when users have too many options. Apple positions itself as an affordable yet upscale place that offers the world’s best shows. That strategy seems to be paying off.

In contrast, Netflix changed its strategy because it was theoretically past the hot growth period. The platform is expected to switch to advertising, cheaper packages as well as other options to expand the potential market.

In general, Apple TV+ with a high percentage of award-winning movies, even though it’s only been available for 3 years, is a formidable competitor to Netflix and has a lot of room for growth. It could become a fundamental part of home entertainment as customers become more familiar and barriers to entry are low.

According to Apple Insider

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