Apple TV+ has been handing out lengthy free trials and extensions since its launch in November 2019 but that will soon change.
Starting July 1, consumers who purchase a new iPhone, iPad, iPod touch, Apple TV or Mac will be offered three free months of Apple TV+, down from the free year that the company was previously packaging with new hardware sales and activations. Apple also said that the three free months promo is not available to consumers who previously accepted the one free year deal for Apple TV+.
The shrinking free trial arrives as Apple TV+ is getting ready to release the second seasons for two of its biggest hits; “Ted Lasso” returns in July and “The Morning Show” returns later this summer. It also demonstrates that Apple is ready to start pushing Apple TV+ toward being a more significant contributor to its service revenues.
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Apple has not shared much specific information about Apple TV+ in terms of subscriber numbers or engagement metrics. But the company shared during its most recent earnings call that it now has more than 660 million paid subscriptions across all its services and that service revenues topped $16.9 billion in the first quarter of 2021.
However, a majority of Apple TV+ subscribers may still be getting the service for free. Media analyst firm MoffettNathanson in January shared its SVOD tracker—assembled with help from HarrisX—and found that Apple TV+ still had 62% of subscribers on free promotions, far higher than peers including Disney+ and HBO Max.
“In fact, all three services (Disney+, HBO Max and Apple TV+) remain in danger of losing momentum if they are not able to entice renewals with exciting original content in the coming months,” wrote Michael Nathanson in a research note. “Disney and WarnerMedia have been clear about strengthening their respective content offerings, but it seems Apple is still not all-in on making Apple TV+ originals a focal point.”