Apple poised to jump into video, with over 50 percent of U.S. now subscribed to streaming ...
According to a new digital media trends survey, Americans spend more than $2 billion per month on streaming subscriptions, and Apple appears ready to capture some of that in the near future with its aggressive content creation moves.
The 12th edition of Deloitte's Digital Media Trends Survey found that 55 percent of U.S. households now subscribe to at least one streaming service, and the average streaming video subscriber is paying for three services.
Also, more than 48 percent of U.S. consumers stream television content either every day or weekly, a number that was just 37 percent last year. And those subscribing to specific services are largely driven to do so by exclusive content.
The news from the survey bodes well for Apple's ambitious content plans, as it shows a consumer trend towards getting streaming content from more than one source. Whatever form Apple's plans take, it won't necessarily mean customers bailing on Netflix, Hulu or Amazon Prime. It's also likely that a lot of those streams are using the Apple TV to do so, although the survey isn't broken down by device.
"Consumers now enjoy unparalleled freedom in selecting media and entertainment options and their expectations are at an all-time high," Kevin Westcott, vice chairman and U.S. media and entertainment leader, Deloitte LLP and author of the survey said in the announcement. "The rapid growth of streaming services and high quality original content has created a significant opportunity to monetize the on-demand environment in 2018."
The survey also drew conclusions about generational approaches to content, finding that more than 60 percent of Gen Xers -- most of whom are now older than 40 -- stream movies.
Apple's Eddy Cue talked about Apple 's still relatively amorphous content plans at the South by Southwest festival last month. Cue stated that Apple is "all in" on content, although he stated that, contrary to Netflix, "we're not after quantity, we're after quality."
Apple so far has announced a handful of high-profile projects, including a drama starring A-listers Reese Witherspoon and Jennifer Aniston, a partnership with rapper Drake and "Central Park," a new animated musical series from the creator of "Bob's Burgers."
The 12th edition of Deloitte's Digital Media Trends Survey found that 55 percent of U.S. households now subscribe to at least one streaming service, and the average streaming video subscriber is paying for three services.
Also, more than 48 percent of U.S. consumers stream television content either every day or weekly, a number that was just 37 percent last year. And those subscribing to specific services are largely driven to do so by exclusive content.
The news from the survey bodes well for Apple's ambitious content plans, as it shows a consumer trend towards getting streaming content from more than one source. Whatever form Apple's plans take, it won't necessarily mean customers bailing on Netflix, Hulu or Amazon Prime. It's also likely that a lot of those streams are using the Apple TV to do so, although the survey isn't broken down by device.
"Consumers now enjoy unparalleled freedom in selecting media and entertainment options and their expectations are at an all-time high," Kevin Westcott, vice chairman and U.S. media and entertainment leader, Deloitte LLP and author of the survey said in the announcement. "The rapid growth of streaming services and high quality original content has created a significant opportunity to monetize the on-demand environment in 2018."
The survey also drew conclusions about generational approaches to content, finding that more than 60 percent of Gen Xers -- most of whom are now older than 40 -- stream movies.
Apple's Eddy Cue talked about Apple 's still relatively amorphous content plans at the South by Southwest festival last month. Cue stated that Apple is "all in" on content, although he stated that, contrary to Netflix, "we're not after quantity, we're after quality."
Apple so far has announced a handful of high-profile projects, including a drama starring A-listers Reese Witherspoon and Jennifer Aniston, a partnership with rapper Drake and "Central Park," a new animated musical series from the creator of "Bob's Burgers."
Comments
I think it is a waste of time, focus and $. Lot of other folks are already spending billions creating content and they are all already in the App store
I’m wondering what the content delivery will consist of. Will it be an app on the ATV? Surely not iTunes? Will there be an additional fee over Apple Music? Probably. Or will it be a single price for everything like Prime? If $99/yr buys you music and shows I think most real people (not tech blog naysayers, see above and below) will be on board.
Maybe this is their way of trying to strong-arm uncooperative and ungrateful content providers like Netflix who aren't doing their part to make their app's experience on Apple as good as it could be.
Personally I think Apple should just outdo Netflix with their own subscription service for video, and buy them out of existence if need be. I want to see better content delivery on Apple platforms. Better UI, better feature adoption, better everything.
Since Apple Music alone is $120/yr ($180/yr for a family), you’re not going to get music and video content for $99/yr.
I have no problem with Apple avoiding extreme content like Game of Thrones. I love the show, but the gratuitous sex and violence can be laughably over the top.
I pay for Amazon Prime but rarely use the streaming content. I guess Deloitte would count that as a streaming subscription.
I do pay for and use DIRECTVNOW after having sampled Hulu, YouTubeTV, Sling TV and DTVN. I still want a la carte (no Sling, what you do is not a la carte) as I watch little TV and am not interested in subsidizing the Disney/ESPN empire or Fox anything.
I am a PBS member and anything $5 a month and over gets you a PBS Passport which gives you a large library of PBS stuff to stream on demand. I choose KQED because I like their content better than my local PBS stations. So you can add PBS on demand streaming to your package for $5 a month.
I have tried Curiosity Stream and on demand streaming service kind of like Discovery back before it was ruined. Lots of science, history and technology documentary stuff and they offer a 4K stream. Dropped it as I just did not use it enough to justify the expense. Some of it is OK, some is meh.
Nothing I have heard from Apple sounds in the least bit interesting. Seriously.
I freely admit I am an atypical TV consumer.
Apple Music is not worth $120/yr. Low quality 128kbps DRMed audio is not anything I have an interest in. I also oppose the way artists are under-compensated for streaming.
As to video, the price should be different for ad supported and ad free. A lot of players want you to pay AND endure a blizzard of ads. HBO is worth the $, ad supported TV is not.
You're right that billions are being spent on creating content, but that much of that content is mostly not available in App store in a way that benefits Apple beyond helping sell some Apple TV's, e.g., Amazon Prime and Netflix. Even that access is fragile as shown by Amazon refusing to install a Prime App, which they could pull in the future.
Fortunately, content producing is largely a game of numbers/money as they are all competing for the same producers, directors, etc., to produce content for them, and Apple has the money to get the content they want.
So you assume that Game of Thrones wouldn't have been as successful if it didn't have as much gore and graphic sex scenes? Interesting theory.
Despite the headlines, I doubt Apple is looking at video distribution for the revenue - certainly not the profit - look at Netflix. It is about having a service which can make their devices more valuable. Just like Apple Music (breakeven at best on its own). The more viable video services available, the more an aggregation platform like Apple devices has value (if just a duopoly, there is less).
There are two ways that Apple getting into their own content can help:
- Ability to license other content (seat at the table) to flesh out a core streaming service.
- With own streaming service, better ability to have some leverage with Netflix, Hulu, Amazon Prime, etc, to build/allow features which make the Apple TV and TV apps more useful (right now Netflix and Amazon do not play ball so much).