Hollywood writers' strike could lead to difficult times for Apple TV+, but Apple can handl...
Apple TV could suffer from an impending Hollywood writers' strike due to a small library and lack of unscripted content, but the company can easily weather the storm.
Apple TV+
Hollywood is preparing for a potential writers' strike that might start on May 1 after the Writers Guild of America West and East members authorized a strike earlier in April. A strike isn't guaranteed, but media companies are making preparations since the last strike over a decade ago that further fueled reality television lasted for 100 days.
Analysts believe a strike would affect Apple, more than other companies, according to Business Insider. The company has focused on original films and series with A-list celebrities in a "quality over quantity" strategy.
But that has resulted in a smaller content library than rivals, and Apple TV+ has fewer scripted and unscripted titles. Apple also doesn't produce a lot of reality TV shows, which is part of the backup plans from Hollywood executives to produce content during a writers' strike.
A lack of fresh content due to a strike may also result in a drop in subscribers. "One hundred percent, it will impact churn," Michael Pachter, a media and entertainment analyst who serves as managing director for equity research at Wedbush Securities, said.
Although it's uncertain how long a strike may run, Pachter said it could reduce the number of new productions by 25% in 2023 if it lasted three months. However, Pachter also said Apple should be fine since it doesn't primarily rely on Apple TV+ for revenue.
"They're building a long-term brand of Apple TV+, which is something apart from all their devices and their cool software. And they're in the early innings," Pachter said, adding: "I think they literally have a 100-year vision -- not worried about making a quarter."
Apple's Services business generated $20.77 billion in revenue in the first quarter of 2023, which includes Apple TV+, iCloud, and other products. And that was a drop in the bucket of its overall revenue of $117.15 billion.
"Apple can just as easily -- more easily than almost any of the streamers -- take a pause," Alvin Lieberman, a professor and executive director of the entertainment, media, and technology program at New York University's Stern School of Business, said.
"If it turns out that they really have a wasteland in front of them for, let's say, 30, 60, 90 days, it would not damage their P&L," he continued. "It would not damage the perception that people have of Apple TV+."
Read on AppleInsider
Apple TV+
Hollywood is preparing for a potential writers' strike that might start on May 1 after the Writers Guild of America West and East members authorized a strike earlier in April. A strike isn't guaranteed, but media companies are making preparations since the last strike over a decade ago that further fueled reality television lasted for 100 days.
Analysts believe a strike would affect Apple, more than other companies, according to Business Insider. The company has focused on original films and series with A-list celebrities in a "quality over quantity" strategy.
But that has resulted in a smaller content library than rivals, and Apple TV+ has fewer scripted and unscripted titles. Apple also doesn't produce a lot of reality TV shows, which is part of the backup plans from Hollywood executives to produce content during a writers' strike.
A lack of fresh content due to a strike may also result in a drop in subscribers. "One hundred percent, it will impact churn," Michael Pachter, a media and entertainment analyst who serves as managing director for equity research at Wedbush Securities, said.
Although it's uncertain how long a strike may run, Pachter said it could reduce the number of new productions by 25% in 2023 if it lasted three months. However, Pachter also said Apple should be fine since it doesn't primarily rely on Apple TV+ for revenue.
"They're building a long-term brand of Apple TV+, which is something apart from all their devices and their cool software. And they're in the early innings," Pachter said, adding: "I think they literally have a 100-year vision -- not worried about making a quarter."
Apple's Services business generated $20.77 billion in revenue in the first quarter of 2023, which includes Apple TV+, iCloud, and other products. And that was a drop in the bucket of its overall revenue of $117.15 billion.
"Apple can just as easily -- more easily than almost any of the streamers -- take a pause," Alvin Lieberman, a professor and executive director of the entertainment, media, and technology program at New York University's Stern School of Business, said.
"If it turns out that they really have a wasteland in front of them for, let's say, 30, 60, 90 days, it would not damage their P&L," he continued. "It would not damage the perception that people have of Apple TV+."
Read on AppleInsider
Comments
https://twitter.com/TVGrimReaper/status/1648700991267803136?s=20
The fact that their unwatched service has some of their unwatched shows delayed for a short while should hardly be a problem for them.
The quoted tweet does show y/y charges overall and for the “big” services.
But the Nielsen chart and the added text for the tiny services show the absolute share of viewing for the month of March, not the change.
Now four years in it doesn't seem to be progressing very quickly, so perhaps it's not a focus service of Apple's. I still have a free subscription (I think two years worth so far) but I don't think I'd pay for one at this point.
Of course there is always the possibility that other unions and guilds will not cross WGA’s picket lines.