Apple CEO calls Apple TV+ a ‘gift to our users’

Roku Apple TV
Apple TV+ will be available on Roku and Amazon Fire TV devices when it launches. (Apple/Roku)

Apple TV+, the company’s streaming video service launching Friday, is being positioned as a tuck-in present for its hardware customers.

During Apple’s fiscal fourth-quarter earnings call Wednesday, CEO Tim Cook described his company’s thinking behind making Apple TV+ for consumers who purchased a new iPhone, iPad, Apple TV, iPod touch or Mac beginning on September 10.

“Yeah, it’s a gift to our users and from a business point of view, we’re really proud of the content. We’d like as many people as possible to view it. So, this allows us to focus on maximizing subscribers, particularly in the early going. We feel great about doing that. We think it’s a bold move,” Cook said.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

He also said that the $4.99 per month price will also be attractive for consumers not receiving the service bundled with a device purchase.

“The price is very aggressive as well. You think about the quality of content that you get for $4.99 and it’s amazing,” Cook said.

RELATED: Lack of interest in Apple TV+ content is a big barrier for subscribers

Apple posted quarterly revenues totaling $64 billion, up 2% year over year. Service revenues accounted for $12.5 billion, which the company said was an all-time high.

It’s still unclear what impact Apple TV+ will have on service revenues, but according to UBS analyst Timothy Arcuri, Apple reaffirmed the accounting of TV+ free subscriptions is unlikely to have material financial impact based on their assumption of take-rate.

Earlier this month analyst firm Wedbush said that Apple’s approximately 900 million iPhones active worldwide means that Apple TV+ could attract 100 million subscribers within three to four years. The firm also said that Apple TV+ could "disrupt" about 10% of Netflix’s target customer base in 12 to 18 months. But Apple could be placing some hurdles in front of would-be subscribers.

According to Ampere Analysis’ newest survey of U.S. consumers, there’s a lack of interest in Apple TV+’s content lineup, which is relatively limited compared with peers like Amazon Prime Video, Hulu and Netflix. The firm also found that many respondents said that they already have enough SVOD services, and that both factors could hold up Apple TV+’s growth. The service’s aggressive price tag is not seen as a barrier.

Suggested Articles

CuriosityStream, a subscription video service specializing in science and nature series and films, said it now has 10.5 million paying subscribers.

AMC Networks said that its four subscription streaming video services now have more than 2 million subscribers combined.

Vizio today launched Vizio Ads.