The deepest pockets in Hollywood

Apple TV + has a huge advantage: Apple has, by far, the deepest pockets in Hollywood. And Loup Funds estimates that by early 2021, streaming subscriptions constituted 95% of the global market share of entertainment revenues (excluding digital downloads).


Rebecca Mulberg and Gene Munster for Loup Funds:

Aside from Amazon Prime which is on over 20,000 titles in the MGM catalog before 1986, we think Apple is best placed to increase the share from its fractional 2% share of streaming revenue today (30 million paying subscriptions). Funded by nearly $ 100 billion in annual operating revenue, Apple’s content spending is limitless. This gives them an edge in Hollywood development deals and in attracting top-tier talent. Regarding the company’s earnings in March 2022, Tim Cook said Apple does not make “purely financial decisions” about acquiring content, which underscores the company’s commitment to developing quality content. In terms of UI, Apple may also be the only streaming service that can run ad-free in the long run. Currently, Prime Video and Peacock have part of their library supported by ads, while HBO, Disney + and Netflix are exploring ad-based models. Bottom line: It seems inevitable that most streaming services will show advertisements in the future, which can become a selling point for Apple TV +.

MacDailyNews takes: Eh:

Apple’s content spending supports its growing roster of talent, including a recent deal with Tom Hanks’ production company Playtone; Natalie Portman’s production company, MountainA; Leonardo DiCaprio’s production house, Appian Way; and Idris Elba’s production company, Green Door Pictures. Not to mention the contracts with Oprah Winfrey, Alfonso CuarĂ³n, Ridley Scott, A24 and Sesame Workshop. Separately, Apple continues to develop its sports broadcasting capabilities, with its MLB Friday Night Baseball deal and a ten-year deal with MLS. We believe NFL and Formula 1 racing will follow within the next two years.

The one downside to Apple TV +: While the quality of its content is high, its library isn’t full enough to compete with the likes of Netflix, Hulu, and HBOMax. In the end, we believe that quality will win over quantity.

MacDailyNews takes: Loup estimates that Apple TV + currently holds 6% of the streaming services market in the United States with approximately 40 million paid subscribers as of the Q222 calendar.

As for the deep pockets:

Those who can understand Apple’s huge mountain of money and the company’s unparalleled ability to generate money can clearly see who will be the winner. Producers, writers, directors, editors, actors, etc. the most talented are attracted to exactly what Apple has and produces in great abundance: Cash. The king.

Like the honey bears, it is already happening. – MacDailyNews, January 3, 2018

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