Apple just reported a mind-boggling fiscal first quarter complete with a big spike in service revenues but still didn’t provide much clarity on how Apple TV+ fits in.
When asked about whether slower subscriber growth trends that have impacted Netflix and others extended to Apple TV+, CEO Tim Cook demurred on delving into metrics.
“We, you know, don't give out subscriber numbers for Apple TV+. What we do is give out a subscriber number for, our subscription number for the total number of subscriptions that we had. And I think [CFO Luca Maestri] mentioned earlier we ended the quarter at 785 million. And so, we were incredibly pleased with that,” he said, according to a Motley Fool transcript.
Apple said the new figure represents year over year growth totaling 165 million. It’s a huge number but it’s also a confounding figure for trying to parse out Apple TV+’s trajectory. Apple counts both its branded services services such as iCloud and third-party services purchased through its platform in the total, and as Inc.’s Jason Eten points out, the company counts each individual Apple branded subscription. So, if one person pays for Apple TV+ and iCloud, that’s two subscriptions and not one unique user.
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Apple reportedly told the International Alliance of Theatrical Stage Employees in July that Apple TV+ had fewer than 20 million subscribers in the U.S. and Canada at the time, according to Variety. But during Thursday’s earnings call, the company focused on prestige, saying that Apple TV+ shows and films have racked up 200 award wins and 890 nominations.
“We're doing exactly like we had wanted to, giving storytellers a place to tell original stories and feel really good about where we are competitively and the strategic position of the product,” said Cook. “We don't make purely financial decisions about the content. We try to find great content that has a reason for being.”
Even without knowing the exact impact of Apple TV+, it’s reasonable to at least believe that the company’s programming decisions around the service aren’t hurting the bottom line. Apple’s services revenue totaled $19.5 billion, up from $15.76 billion during the year-ago quarter, with $5.4 billion in cost of sales.
With growth like that and the corresponding stock price bump, it’s entirely likely that Apple will just continue to trumpet the TV+ hits like “Ted Lasso” and leave the details buried in the mix.