Apple TV+ has 'no excuse' for lagging growth, says Netflix co-founder

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in General Discussion
Netflix co-founder Marc Randolph said that Apple TV+ has "no excuse" for its lagging behind other competitors in the streaming market.

Credit: Apple
Credit: Apple


Apple has yet to report subscriber numbers for its fledgling streaming service. However, there are indications that the company isn't seeing the same type of growth as its rivals and that it may have a "freeloader" problem.

"If Apple spent one quarter as much time on content as they do on giveaways they really could play," Randolph told Yahoo Finance in a recent interview. He noted that Apple has $200 billion cash on hand.

Apple has more than 50 films and TV shows on its Apple TV+ platform. That number pales in comparison to the massive libraries of competitors like Netflix, or even Disney+, which launched around the same time as Apple.

"They have no excuse [and] they're still not in it with both feet," Randolph said. "They really have to do the entrepreneurial thing and walk up to the edge of the cliff and jump."

The Netflix co-founder also noted that Apple TV+ has the highest churn rate of any streaming platform.

In January, Apple extended its initially yearlong free trial through July 2021. Data also suggests that the majority of users on a trial don't plan to resubscribe on the promotional period ends.

"You can't keep replacing people, you've got to give them a reason to stay," Randolph said.
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Comments

  • Reply 1 of 47
    I’d rather they jump into gaming with both feet. More money to be made and closer to their wheelhouse.
    elijahgn2itivguy
  • Reply 2 of 47
    I don't see how AppleTV+ can even compare to Netflix or Disney+.  Netflix is like the Blockbuster of streaming with content from literally everywhere, and Disney has decades of movies from all of their studios.  What does Apple TV+ have?  A handful of movies/shows that it has purchased for tons of money?  Apple would need to partner with major studios to have access to their content to compete with Netflix or Disney.

    As it is, Apple like your local theatre.  It has a new movie every now and then, maybe you like it, maybe you don't.  Except you're paying every month whether you like the offering of the month or not.
    StrangeDaysapplguyzeus423elijahgflyingdpn2itivguyforegoneconclusionllamachemengin1entropys
  • Reply 3 of 47
    Thing is he’s kinda right. TV+ definitely has quality content but has a tiny amount of content. 

    The other big issue with their TV ventures is the fact that everyone (including Apple it seems) thinks that TV+ is the only thing they’re trying to sell in their TV App. There’s also a whole set of “TV Channels” baked right into the app that no one seems to talk about or even knows exist. TV+ are the exclusives of the TV App, and the TV Channels (like CBSAA, Showtime, AMC+ etc …TV+ itself is a channel) are the answers to the legacy content meant to go along with TV+, giving users the choice of what they want to tack on in addition to TV+. This is where Apple is dropping the ball completely. Channels (like HBO, Smithsonian, MTVhits and Comedy Central hits) are dropping one by one. And other single-entity services like Disney+ Peacock and Discovery+ are all forgoing being integrated in the TV App that way as they don’t see it as profitable. 

    So yeah Apple needs to work harder on TV+ with content, but they also need their channels service to succeed if they want TV+ to succeed. Apple needs to sell the TV App as a product, not just TV+.
    chemengin1tmayanantksundaram
  • Reply 4 of 47
    Apple got hit by bad timing with Apple TV+. They launched it and basically had to suspend production a few months later which slowed their rollout of new content. I feel like they did the right thing by extending the trial period given they were unable to continue to deliver new content and decent clip. 

    Comparing them to Disney is pretty ridiculous given Disney had it's entire back catalog that covers decades. 

    I guess the one bright spot for Apple TV+ is when competitors start talking smack about an Apple offering it means said competitor is about to get steamrolled and is pooping their pants. 
  • Reply 5 of 47
    ITGUYINSD said:
    I don't see how AppleTV+ can even compare to Netflix or Disney+.  Netflix is like the Blockbuster of streaming with content from literally everywhere, and Disney has decades of movies from all of their studios.  What does Apple TV+ have?  A handful of movies/shows that it has purchased for tons of money?  Apple would need to partner with major studios to have access to their content to compete with Netflix or Disney.

    As it is, Apple like your local theatre.  It has a new movie every now and then, maybe you like it, maybe you don't.  Except you're paying every month whether you like the offering of the month or not.
    Except I haven't paid anything, and if I were it would be less than the price of a pint of local beer. I do plan on paying when the trial runs out, as part of the bundle. 

    As for the content, I'm satisfied so far -- there's always been a show or movie I'm interested in, making it work the eventual cost of...$5. IMO it has far more appealing content than Showtime or Starz, which basically have one hit show each. Who pays for those services? (I paid to binge Homeland and got out).

    But yeah, comparing to Netflix or Disney is pretty silly since they have many years (or decades) of back catalog. 
    edited February 2021 jcs2305tmaylolliverRayz2016
  • Reply 6 of 47
    tzeshantzeshan Posts: 2,351member
    I agree. Apple's biggest shortcoming is not proficient in producing content. 
  • Reply 7 of 47
    AppleTV+ debuted in November 2019.
    So it’s basically a year old and the majority of that time has been during a pandemic. Which is not exactly the best environment for securing staff and production.  Nevermind that the service itself also requires an Apple device or a recent supported 3rd party device.

    Meanwhile Netflix has been around since 1997.

    I dare say Apple has done *plenty* more since 1997 than Netflix has. 
    robin hubermike1jcs2305jony0tmaylolliverRayz2016StrangeDays
  • Reply 8 of 47
    jccjcc Posts: 335member
    Apple should have just bought the library they needed. MGM for example.
    zeus423rcfajony0anantksundaramentropys
  • Reply 9 of 47
    AppleTV+ simply doesn't have enough good content.  It doesn't take a genius to figure that out.  Apple should follow/copy Netflix's business model and get the same type of content Netflix gets.  Apple can afford it and they have enough active devices to tempt people to use AppleTV+ instead of Netflix.

    Apple keeps spending money on share buybacks when it could be using some of that money to purchase a major movie studio, purchase older TV and movie content, purchase foreign TV and movie content or create their own content (which will certainly take time).  When a company has as much money as Apple has, it has a host of options it can choose from.  Maybe AppleTV+ just needs more time.  There's no way it can compete with Disney+ which has loads of great content.  Apple had the chance to get all of the James Bond movies but didn't go after them.  Too bad.  I think I even have all of the 007 movies in my personal Plex library.  I wish Apple the best of luck over the next year or so and maybe they'll learn what it takes to get subscribers.  It shouldn't be that hard to do when all they have to do is scan Netflix's or Disney's back catalogs to see what they're up against.

    Wall Street analysts keep saying that AppleTV+ sucks and streaming subscriber market share is everything.  Apple apparently needs to improve on those points.  I have Amazon Prime Video so that's what I watch and I don't have time to watch much more, especially once the weather gets warm and I'm outside enjoying the fresh air and open space all day long.
    muthuk_vanalingamchemengin1
  • Reply 10 of 47
    sdw2001sdw2001 Posts: 18,027member
    AppleTV+ debuted in November 2019.
    So it’s basically a year old and the majority of that time has been during a pandemic. Which is not exactly the best environment for securing staff and production.  Nevermind that the service itself also requires an Apple device or a recent supported 3rd party device.

    Meanwhile Netflix has been around since 1997.

    I dare say Apple has done *plenty* more since 1997 than Netflix has. 
    You make some decent points, but the the one about Netflix isn’t one of them. Netflix was not a streamer in 1997.  They didn’t even start until 2007, and the effort didn’t fully takeoff until 2013 when they invested in House of Cards.  

    Apple is doing it on opposite fashion...producing original content first.  Apple’s problem will continue to be the lack of a back catalog.  Granted, it’s 5 bucks.  But Disney+ is $6.99 and soon $7.99.  I’m not a subscriber, but they have an absolutely insane amount of content. I have Netflix, prime, YouTube TV, and free HBO max in addition to free AppleTV+ until July.  The only show I’ve watched is For All Mankind.  I also watched Greyhound.  We’ll see if I end up paying for it after July.  Either way, I think Apple TV+ is going to be a nascent effort until they get a serious amount of content somewhere. 
  • Reply 11 of 47
    At $5 a month, it is a good value. For $5, I feel like there is one new quality show (or season of a show) every month, all original content, an occasional movie or two of very high quality (Tom Hanks and such), and a documentary series. For $5 a month, and the quality, it is worth it to me. I spend more than that on one book.
    tmaylolliver
  • Reply 12 of 47
    Sez the guy with the 22 year head start. 
    edited February 2021 mike1lolliver
  • Reply 13 of 47
    Can we get some anime on there? Netflix has made the genre mainstream and helped increase the audience size. Bring me fresh original anime and you can take my money. They should have bought Crunchyroll when it was available. I pay for Hulu, Funimation, Netflix, HBO Max and VRV. Why? Anime. Apple’s catalog is moving way too slow. Put the petal to the metal!!
    n2itivguy
  • Reply 14 of 47
    I would like Apple TV+ paid channels to be commercial free. I get a 15 second ad in the middle of most programs. These ads are just promos for other shows, but you can't skip over them, and you can't even watch the programs mentioned in the ads because most of the ads are for programs you can't even get here in Canada.
  • Reply 15 of 47
    elijahgelijahg Posts: 2,831member
    As I've said before regarding AppleTV+, I just don't see how it (is ever going to) improve Apple's bottom line. It's loss leading right now, with surveys showing people would generally ditch it if it wasn't for the seemingly endless free trial extensions. Steve's oft-repeated message was that Apple would only get into things to improve hardware sales, and only enter new categories if they could redefine the category by greatly improving it. AppleTV+ does neither of those whatsoever. No one is going to buy an Apple product as a result of AppleTV+, it's got zero GoT-style shows for people to obsess about, and it's on non-Apple hardware anyway. It just seems pretty pointless - but then you see how ecstatic Cook was when it was announced in complete contrast to his usual disinterested persona and forced enthusiasm at non-AppleTV+ Apple events and it makes sense: it's Cook's attempt at a non-Jobs legacy. 
    edited February 2021 muthuk_vanalingam
  • Reply 16 of 47
    Hmmm?
    I remember the last time a competitor tried to diss Apple.
    Be smart Netflix, remember Blackberry?
    lolliver
  • Reply 17 of 47
    Hi churn and low number of paid content possibly due to lack of “normal” content.

    What is “normal content ”?  Simple: it’s content not dripping in left-leaning woke-ism.  About the only show that isn’t featuring LGTBQ characters/plot lines or black actors >13% of total is Ted Lasso.  Everything else is a democrat advert.
    elijahgmacplusplus
  • Reply 18 of 47
    sparkled said:
    it’s content not dripping in left-leaning woke-ism.  About the only show that isn’t featuring LGTBQ characters/plot lines or black actors >13% of total is Ted Lasso.  Everything else is a democrat advert.
    I feel that you are correct here, but to be fair this is not a problem unique to Apple.

    I like shows that are so entertaining that you have to ask yourself at the end, "Did I see any minorities in that show?" If there were indeed >13% minorities, but you can't remember them, then that's a good sign that the show wasn't specifically written to promote minority issues. The purpose of entertainment is to entertain, not to make you cognizant of or indoctrinated in women's issues, or gay issues, or minority issues. I wouldn't be so disappointed with some of the pro-LGBTQ episodes on Apple TV if they actually were good episodes rather than boring episodes. But they were boring. I just want to be entertained, not schooled. Is that bad?
    elijahg
  • Reply 19 of 47
    tshapitshapi Posts: 372member
    Apple TV+ is really no different than Apple Music. It took Apple spending 3B on beats to yet people who knew how to help Apple be more successful in that industry. Remember how many times they failed? 

    Also, I think Apples problem is they insist on maintaining a profit for every customer.   Apple might be more profitable if they had a ad supported freemium level and then a paid tier.   

    Also, Netflix was not in streaming since 1997. One of the things they did to become a behemoth is buy already existing items like friends and the office and so on.   Apple has been toying with streaming for a while, they waited to long to get in the game.  Cause now no one wants to sell or rent there catalog, they’d rather just start there own streaming service instead.  

  • Reply 20 of 47
    "Not in it with both feet". I assume the other foot is legacy content. Apart from Fraggle Rock (and Peanuts?), Apple has nothing but original/ exclusive programming. 
    They seem to be playing the long game and can afford to give it away for free as long as they want to.

    However, the appeal of a known property would create a lot of buzz.
    Apple probably tried it when (allegedly) bidding for Friends. Personally, I am happy that god-awful show didn't make it to Apple TV+.
    cypresstreetmayStrangeDays
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