Apple announced financial results for its fiscal 2023 third quarter ended July 1, 2023. The company posted quarterly revenue of US$81.8 billion, down 1% year over year, and quarterly earnings per diluted share of US$1.26, up 5% year over year.
The company’s streaming segment, which includes its Apple TV+ service, which has recently announced a deal to carry the Major League Soccer, had US$21.21 billion in revenue, beating analysts’ estimates of US$20.76 billion. According to the company, Apple now has 1 billion subscribers on its platform, which includes both Apple services and third-party apps, up from 975 million a quarter ago.
“We are happy to report that we had an all-time revenue record in services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone. From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it,” said Tim Cook, CEO of Apple.
“Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment. During the quarter, we generated very strong operating cash flow of US$26 billion, returned over US$24 billion to our shareholders, and continued to invest in our long-term growth plans,” added Luca Maestri, CFO of Apple.
● STREAMING ORIGINALS DEMAND SHARE
Led by the third season of “Ted Lasso,” as well as breakout hit “Silo,” Apple TV+ has hit new highs in streaming originals demand share, Parrot Analytics said. When it comes to demand for original series, Apple TV+ is now the third most in-demand service with US audiences, and the fourth most in-demand globally.
“Ted Lasso” was the most in-demand streaming original with global audiences from April-June 2023, the first non-Netflix or Disney+ original to achieve this ranking since 2017. Meanwhile, “Hijack” is off to a great start, averaging exceptional demand worldwide since debuting in late June, and “Silo” has been renewed for another season.
Nevertheless, Parrot Analytics noted that Apple TV+ is more reliant on original programming than any other streamer, and might feel the pains of a prolonged Hollywood work stoppage faster than its competitors when it no longer has new shows and movies in the can.
While other SVODs can fall back on their larger content libraries, Apple does have one singular exclusive asset: Lionel Messi. The soccer legend’s decision to take his talents to Inter Miami CF could prove to be Apple’s biggest game change of the year, according to Parrot. Apple now has exclusive access to the vast majority of Messi’s matches through its MLS Season Pass. This should lead to material revenue growth from both new subscribers who want to watch Messi, and by upselling existing Apple TV+ subscribers with a discounted MLS Season Pass offering.