How can Apple stop losing £20 million per week ?

 

📈 1. Grow the Subscriber Base (and ARPU)

  • Expand beyond the Apple ecosystem: Right now, many TV+ subs come from free or discounted bundles with Apple devices. Apple could push harder into non‑Apple households via aggressive marketing and partnerships (e.g., with smart TV makers, ISPs, or mobile carriers).
  • Tiered pricing: Introduce an ad‑supported plan at a lower price to attract cost‑sensitive viewers, while keeping a premium ad‑free tier. Netflix’s ad tier has been a major ARPU booster.
  • Global expansion: Target high‑growth streaming markets like India, Southeast Asia, and Latin America with localized content and pricing.

🎬 2. Balance Content Spend With Returns

  • Smarter budgeting: Apple spends ~$4.5 B/year on originals, but some big‑budget projects (Argylle, $200 M) failed to move the needle. More disciplined greenlighting — focusing on shows with proven audience pull — could cut waste.
  • Library depth: Licensing older, popular shows and films could cheaply bulk up the catalog, keeping subscribers engaged between prestige releases.
  • Franchise building: Develop recurring IP (like Disney’s Marvel/Star Wars model) to amortize costs over multiple seasons and spin‑offs.

🤝 3. Leverage Bundling More Strategically

  • Apple One upsell: TV+ is already in Apple One, but Apple could make it the must‑have reason to subscribe by adding exclusive cross‑service perks (e.g., early music releases on Apple Music tied to TV+ shows).
  • Device tie‑ins: Offer extended TV+ trials with hardware purchases, but convert more of those trial users into paying customers with targeted retention campaigns before the trial ends.

📊 4. Monetize Beyond Subscriptions

  • Merchandising & licensing: Sell merchandise for hit shows (Ted Lasso jerseys, Severance collectibles) and license IP for games or books.
  • Live events & sports: Apple’s MLS deal is a start — expanding into other sports or live entertainment could attract new audiences and advertisers.
  • International co‑productions: Share production costs with overseas studios while gaining access to their markets.

🧠 5. Play the Long Game — But With Milestones

Apple’s original plan allowed for $15–20 B in losses over the first decade of TV+ as a “loss leader” to strengthen the Apple ecosystem. That’s still viable — but Tim Cook has reportedly begun demanding tighter oversight and better ROI on content spend.
The path to profitability likely means:

  • Doubling paid subscribers to ~100 M+
  • Raising ARPU via ads and pricing
  • Trimming 10–20% from annual content costs without hurting quality

Bottom line: Apple TV+ can be profitable, but only if it shifts from being a prestige‑only boutique service to a scaled, multi‑tiered platform with smarter spending and diversified revenue streams — all while keeping enough award‑winning content to maintain its brand halo.


Comments

Post a Comment

Popular posts from this blog

What Napoleon III and Haussmann Did to Modernize Paris

  🏗️ What Napoleon III and Haussmann Did to Modernize Paris 1. Demolished the Old City Cleared out 60% of medieval Paris , including overcrowded, disease-ridden neighborhoods Removed narrow alleyways that had become hotbeds for revolution and unrest 2. Built Grand Boulevards Created wide, straight avenues to improve traffic flow and prevent barricades during uprisings These boulevards also allowed sunlight and air to reach formerly dark, cramped areas 3. Installed Modern Infrastructure Constructed a vast sewage and water system , dramatically improving sanitation Built aqueducts for clean drinking water and introduced gas street lighting 4. Created Green Spaces Developed parks like Bois de Boulogne and Bois de Vincennes Planted thousands of trees and added public squares for leisure and civic life 5. Unified and Beautified the City Standardized architecture with the iconic Haussmannian style : cream-colored stone façades, aligned balconies, and mansard roo...
Read more

Would Gandhiji be dismissed as woke in 2025 ? Would Independence be possible against the Washington lobby today?

  🇮🇳🆚🇺🇸 Gandhi vs. the United States: A Hypothetical Independence Struggle 🕰️ Historical Context: Gandhi’s Real-World Success Mahatma Gandhi led India’s independence movement against British colonial rule using nonviolent resistance , civil disobedience , and moral persuasion . His campaigns—like the Salt March, Quit India Movement, and Swadeshi boycott—mobilized millions and exposed the moral contradictions of imperialism. Key factors behind his success: British liberalism : Britain’s democratic institutions and public opinion were susceptible to moral pressure. Global context : Post-WWII anti-colonial sentiment and U.S. pressure on Britain accelerated decolonization. Indian unity : Gandhi’s ability to unify diverse communities under a shared moral cause was pivotal. 🧠 Hypothetical Scenario: India Under U.S. Rule in 2025 Let’s assume India is a U.S. territory or protectorate in 2025, governed by Washington. What would Gandhi face? 🇺🇸 U.S. Governance Traits ...
Read more