Apple TV+ has been lagging its peers in recent months. The Apple Maven highlights the Cupertino company's struggles at gaining relevance in the streaming space.
Apple is known for being successful across virtually all its product lines, from the iPad to the Watch and everything in between. This is evident by all the buzz created every year around each new iPhone launch.
However, when it comes to services, the company has been struggling to outperform its competitors. One of the main case studies is Apple TV+. The company's video streaming service has been performing poorly in recent months. Below, we dive deeper into the subject.
Market share and competition
Since the beginning of the year, Apple TV+ has failed to grow in the US video streaming market, heading in the opposite direction of several of its main peers. According to JustWatch, Apple's share of the streaming industry remains at a modest 4%, the same rate since the beginning of the year.
In the first half of 2021, Netflix (NFLX) and Prime Video, the two largest players in the industry, lost market share: 3 and 2 percentage points, respectively. Meanwhile, services like Disney+, the third largest, and AT&T’s (T) HBO Max increased their presence, with Walt Disney’s (DIS) Hulu gaining 13 percentage points of market share in the US in the last quarter.
The “Others” category, which includes services outside the top 7, had a respectable increase in market share of 7 percentage points. According to 9to5Mac, Peacock's loss of share between March and June contributes to this factor. Check out the chart below.
Apple TV+ tried to spark demand for the service by offering a generous one-year free trial to those who purchased new Apple devices. However, so far, the impact on number of subscribers seems to have been minimal. We will see how the end of the trial affects TV+’s market share in the third quarter.
How the platform can change the game
With new investments in studios and in in-house production, Apple seems committed to make its streaming business work. For it to happen, the company needs quality content to stand out. Apple’s latest attempts with the "Morning Show" may not have worked, but the company can still get it right.
In addition, it is important that Apple continues to expand its library. The common denominator across the biggest players in the space is a vast and diverse portfolio of movies and shows. In this regard, it looks like Apple still has quite a bit of catching up to do.