APPLE TV+ TO BUY LIBRARY HOLLYWOOD STUDIOS' SHOWS

Apple announced that it will be acquiring older movies and shows for its TV+ streaming service, to build a back catalog of content that can stack up better than the library of its competitors, Netflix, Hulu, and Disney+. The company’s video-programming executives have taken pitches from Hollywood studios about licensing older content for TV+ into consideration. The decision reflects the company’s strategy shift for Apple TV+, which launched in November with a lineup of original programs. It plans to keep TV+ focused on original shows for now instead of big franchises or blockbusters for its back catalog.

Netflix has thousands of titles to choose from, while Apple TV+, only lists fewer than 30 original movies and shows on its website. Its most popular programs include “The Morning Show,” starring Reese Witherspoon and Jennifer Aniston, and “Defending Jacob,” featuring Chris Evans. But, TV+ is cheaper than rivals in the market, costing USD 4.99 a month, less than half the average Netflix subscription, and free for one year for people who buy Apple devices. Although about 10 million people registered for TV+ by February, only half that number actively used the service. On the contrary, Disney+ signed up more than 10 million downloads within a day of its U.S. launch and has since accumulated over 50 million subscribers. Netflix added almost 16 million customers in the first quarter of 2020

It is seen as an acknowledgment that successful streaming services typically have a mix of old and new shows, which Netflix, Disney’s Hulu and Disney+, and Amazon.com’s Prime Video can serve as examples of. Until recently, Apple refrained from buying rights to old shows, such as“Seinfeld,” which went to Netflix, or “Friends,” which will be on HBO Max. Instead of acquiring or building its library, it relied on its media partners instead. The company’s latest TV app, which launched last year, has built-in subscription capabilities for services like Starz, Showtime, and HBO.

The company has helped grow the company’s services segment, which last quarter made the technology giant USD 13.3 billion or about 23% of its revenue. Apple hasn’t said how much money TV+ has generated or how many subscribers it has, but in April, Chief Executive Officer, Tim Cook said that people staying at home due to the Covid-19 outbreak boosted the use of the service. “The pandemic cut both ways,”  he said.