Apple TV+ Could Bring Us TV 3.0
It’s been said that the film business is made up of 10% movies, 90% popcorn. It’s true — the theaters of the past may have generated a large portion of revenue from food sales. The theaters of the future, however, will likely generate substantial revenue from immersive experiences like VR/AR opportunities.
Samsung is planning TV support for NFTs as the “World’s First TV Screen-Based NFT Explorer and Marketplace Aggregator.” Say that three times fast. The company aims to be a groundbreaking platform allowing users to browse, purchase and display art — in one location.
FOX Corporation has put aside the streaming wars and built their own Blockchain Creative Lab. They’re experimenting with digital ownership of WWE, SXSW, and crafting a Web3 experience devoted to Dolly Parton. A senior executive called Fox the company that “taught Americans how to text 30 years ago with American Idol,” and therefore “the right place to teach Americans what a digital asset is and how to own it.”
Of all the tech conglomerates interested in building the future of entertainment, Apple would be the most prepared force to do it right. Apple could mold the home theater experience into something that we’ve not yet seen before. They have the hardware, software and pockets to make it happen.
Steve Jobs shared his original vision for Apple TV with Walter Isaacson:
“I’d like to create an integrated television set that is completely easy to use. It would be seamlessly synced with all of your devices and with iCloud. No longer would users have to fiddle with complex remotes for DVD players and cable channels. It will have the simplest user interface you could imagine. I finally cracked it.”
Much of Jobs’ vision has been achieved — the UI is easy to navigate and a clear extension of the company’s product lineup. It exemplifies Apple’s ethos of minimalism and functionality. If you purchase an Apple TV, you’ll find that the package comes wrapped with the following instructions on its backside:
The Ultimate Cinematic Experience:
4K HDR and immersive Dolby Atmos sound
App Store: TV+, Netflix, Disney+, HBOMax, Prime Video, YouTube
AirPlay: Share from iPhone or iPad
HomePod: Pair for wireless surround sound
AirPods: Connect for personal audio
Here’s what Apple TV+ has going for them:
With nearly $365 billion in revenue last fiscal year, Apple’s content spend is without bounds. This gives Apple the right of first refusal on projects and an advantage in Hollywood development deals. On a February earnings call, Tim Cook said that Apple doesn’t make “purely financial decisions” on its content acquisition which reiterates their intention and seriousness about curating quality content
Apple may be the only streaming service that can continue to provide ad-free content services long-term. HBO and Disney+, for example, are exploring AVOD options. Even Netflix’s co-CEO, earlier this week, said that AVOD hasn’t been written off by the company. Bottom line: that ad-free watching experience you love about Netflix could change in the near-future.
Apple’s content spend will support its growing list of top-name talent, including a recent deal with Natalie Portman and her production company, MountainA. Apple previously signed Oprah Winfrey, Julie Louise Dreyfus, Monica Beletsky, Alfonso Cuaron, Lee Eisenberg, Leonardo DiCaprio’s Appian Way, Idris Edelba’s Green Door Pictures, Ridley Scott’s Scott Free Productions, A24, Imagine Documentaries, Sesame Workshop and Peanuts.
Apple’s content is becoming more widely applauded. This year’s upcoming SXSW Festival will premiere five Apple TV+ shows including a retelling of WeWork’s narrative, “WeCrashed,” and a Magic Johnson docuseries. The 2022 SAG Awards awarded Apple originals, Coda and Ted Lasso.
Here’s what Apple TV+ is currently developing:
Apple’s Peek Performance event highlighted the company’s plan to enter into the sports broadcasting arena, with an MLB deal for Friday Night Baseball. This followed Apple TV’s stream of UFC 272: Covington vs. Masvidal. What’s next? Many are anticipating that Apple will do a deal with the NFL. This would make sense considering that DirectTV’s contract is soon to end. While Apple could be in competition with ESPN and Amazon for the Sunday ticket, Apple could bundle CFB and NFL into a subscription service.
Currently, Apple has over 14,000 ARKit apps in the App Store — that’s nearly 15,000 applications devoted to augmented reality. As Apple continues to build its library of AR products, Apple TV+ can continue to plan how they’ll best bring viewers into a 3D/4D metaverse experience.
Here’s what Apple TV+ has yet to achieve:
To some, Apple TV+ is just another channel that does not yet have the catalogue to successfully compete with Netflix, Hulu and HBOMax
Apple TV+ users have complained of subtitle synchronization issues, namely in Brazil
Apple TV+ has yet to expand to Android iOS, limiting its user base
Here’s what the competition looks like:
Paid Subscribers for Streaming Services — Dec. 2021-Feb. 2022
Netflix: 221.8MN
Prime Video: 157.4MN (Caveat: these are Amazon Prime members)
Disney+: 129.8MN
Hulu: 45.3MN
HBO Max: 43.3MN
Apple TV+: 40MN
Paramount+: 32.8MN
ESPN+: 21.3MN
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