Apple’s AAPL Tom Hanks-starrer Greyhound has become the largest opening-weekend release for Apple TV+ in its history, per a latest Deadline report.
Moreover, almost 30% of viewers of this World War II movie were first-time users of Apple TV+.
Greyhound’s success undoubtedly strengthens Apple TV+’s competitive position in the streaming market currently dominated by Netflix NFLX, Amazon prime video and Disney’s DIS Disney+.
Markedly, streaming competition is set to get much more intense with today’s launch of Comcast’s CMCSA ad-supported streaming service Peacock.
Nevertheless, Apple’s competitive pricing of $4.99 per month and focus on expanding its original content portfolio is likely to aid subscriber growth in the near term.
Apple Inc. Price and Consensus
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Expanding Content to Aid Apple TV+ Prospects
Apple TV+’s expanding content portfolio is likely to help it retain the new viewers it gained thanks to Greyhound.
Although coronavirus-led lockdowns and shelter-in-home guidance has played havoc with the production schedule, Apple TV+ has a number of shows in the pipeline including Boys State (Aug 10) and Ted Lasso (Aug 14).
Markedly, per a 9TO5 Mac report, Apple has renewed second seasons of Central Park, Dickinson, For All Mankind, Home Before Dark, Little America, Mythic Quest, See, Servant, The Morning Show, Truth Be Told, and Trying.
Although Apple TV+’s content portfolio is not as expansive as Netflix or Disney+, Apple’s focus on partnering with Oscar-winning content makers as well as popular Hollywood stars is expected to be a game changer.
The latest addition to the list of Hollywood celebrities working with Apple is Idris Elba, per another Deadline article. Through his Green Door Pictures production company, the actor will produce global series and features for Apple TV+.
Apple TV+ will also premiere Martin Scorsese’s next movie Killers of the Flower Moon that stars Leonardo DiCaprio and Robert De Niro.
Bundle Offering to Aid Apple TV+ Subscriber Base
Meanwhile, Apple has been rumored to start offering a service bundle that combines access to Apple Music, Apple TV+ and other services such as Apple Arcade, for a single monthly subscription cost of $30.
In fact, this Zacks Rank #3 (Hold) company’s latest iOS 13.5.5 internal files include references to a “bundle offer” and “bundle subscription” that didn’t exist in previous iOS versions. Apple News+ and Apple TV+ are not as popular as Apple Music, so a bundle could drive top-line growth and also keep users even more tied to its ecosystem. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Disney+ is benefiting from Disney’s bundle offering that comprises ESPN and Hulu. The service has quickly gained more than 50 million subscribers, which is encouraging for Apple. Moreover, Disney+ reportedly witnessed a surge in downloads after the launch of Broadway musical Hamilton on the platform. (Read More: Disney Benefits From Hamilton's Launch on Disney+)
Moreover, Apple has already been pushing its services business with tempting offers like free Apple TV+ for one year on new iPhone/iPad purchases or an affordable students' bundle of TV+ and Music. A bundle offering could further drive that effort.
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