Apple TV+ is not set to be a “Netflix Killer”, according to a new report from Enders Analysis. They do not believe it is unlikely that a large number of Netflix users will cancel their subscriptions and move over. The analysts were also underwhelmed by the details of Apple News+.
Tough Competition, But Hope in UK
The report said:
It is not conceivable that many Netflix users would cancel their subscriptions as a result of Apple’s less-expansive product, such is the value that a Netflix subscription currently offers, especially in the US where TV ARPUs for the biggest three cable suppliers are between £68 and £92 per month.
However, the analysts did find reasons for Apple to have some optimism in the UK. They noted that Subscription Video on Demand (SVOD) services only have 42% penetration there, compared to 60%-70% in the U.S. Furthermore, only Netflix, Amazon and NOW TV have significantly over 100,000 subscribers in the UK. There are, therefore, a large number of potential customers for Apple who have not yet committed to service. They also noted the presence of well-regarded media executive Jay Hunt, who is leading on content development in the country.
Not Much News in News+ Announcement
Elsewhere, the analysts felt there was little to write home about in the reveal of Apple News+. They asked:
Why would a major news or magazine publisher want to help develop Apple’s service business—a development with limited short-term upside for a publisher, and considerable long-term risks?
In fairness most analysts said the iPhone was no threat to BlackBerry
Analysts are always underwhelmed by whatever Apple attempts to do. It’s a wonder Apple bothers to do anything as investors never seem pleased. Everything at that Apple event was met with negativity. Conversely, whatever Amazon pursues is met with high praise and said to be a game-changer. One would think the management at Apple didn’t have a clue as to what can make Apple money.
However, I don’t think Apple is going to beat out Netflix in subscribers but Apple’s streaming video service could be somewhat successful and maybe just as good as Amazon Prime Video. As an Amazon Prime member I won’t be switching to what Apple is offering, but I’ve also never even bothered with taking a trial of Netflix which I’ve been offered a number of times. There’s only so much I can watch even during the winter months and during the summer, I don’t want to be sitting in front of a TV set when I can be out riding my bike or running in the park.
I know Netflix will continue to have a sky-high valuation no matter what Apple does. That’s just the nature of Wall Street. They pick their favorites and stay with them. They’re not going to give Apple a snowball’s chance in hell in terms of success of video content. Too bad.
The analysts were also disappointed in AppleNews Plus and to me that seemed like a terrific deal for avid magazine readers. Oh, well… We’ll just have to wait and see how consumers take to the service. I’m not a person who jumps to conclusions before consumers even have a chance to try out some service.