Apple TV+ proves that increasing streaming rates

Perhaps the most inevitable of recent streaming industry measures, tight budgets (led by Warner, which has been cutting costs for years) have forced many platforms to raise prices or change rates. Or to indirectly raise them by adding advertising and charging more without it. Very unpopular move. Or not as much as expected?

Young man, fly away. According to Parrot Analytics, Prime Video and Apple TV+ have recently reported profits. Both had significant Average Revenue per User growth in the fourth quarter of 2023, according to Parrot. Prime Video added ads and Apple TV+ raised US rates, both of which were unpopular.

Two cases. Due to their different roles in the streaming landscape, one has a number of subscribers comparable to Netflix (although, as we’ve noted, they’re Amazon Prime customers, not viewers), while the other is almost a niche platform. Both had a short-term drop in subscribers, but these measures increased revenue and profits, The Wrap recalls.

Apple is growing. Since Prime Video started advertising in January, Apple TV+ is the most interesting of the two cases. Strong premieres and a better catalogue may have contributed to its rise in 2023. In October 2023, Apple TV+ raised its rate from $6.99 to $9.99, which explains its 33% profit increase in the US and Canada. Subscribers are falling, but not enough to lower profits.

The platform thrives. This profit growth is a welcome change for a platform that has struggled financially and had to cut budgets and abandon its Hollywood ambitions. Apple’s ambitious streaming project may survive cost control and future advertising.

The rest was behind. A few weeks ago, we discussed how good, nice, and cheap streaming is over. At least cheap. Netflix’s lack of decline since raising prices and adding ads guarantees that platforms will adjust their high expenses with prices that will create a very different situation. The day will come when we must jump from platform to platform or stick with one.

A $3.4 trillion market cap doesn’t go as far anymore. Or maybe Apple, the world’s most valuable company, decided its streaming service shouldn’t spend so much on expensive original shows starring top actors and filmmakers, especially when its competitors are cutting spending drastically.

Apple TV+, launched nearly five years ago, has been one of Hollywood’s first places to pitch because Apple paid a lot, especially for prestige projects with big names. Despite its low viewership, the service hosted stellar originals like Oscar Best Picture (2022’s CODA) and Emmy Best Comedy Series (Ted Lasso).

Killers of the Flower Moon, starring Robert De Niro and Leonardo Di Caprio, earned $200 million from Apple and Paramount. Napoleon, with Joachim Phoenix, and Argylle, with Henry Cavill and Bryce Dallas Howard, were also $200 million Universal projects.

Other paydays were smaller but still lucrative for an industry seeing its options shrink as Wall Street pressured traditional media companies to profit from streaming services while their film and TV operations faded.

Apple TV+ proves that increasing streaming rates

By nr39r

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