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Avoiding the content catalog ‘arms race’ is helping Apple TV+, says analyst

Source: Joseph Keller / iMore

A smaller Apple TV+ catalog but a focus on quality content is thought to be one of the reasons that the streaming service is doing so well with critics, according to a new report.

Michael Nathanson, a media analyst with MoffettNathanson, believes that the decision to stick to “quality over quantity” has so far stood Apple TV+ in good stead. That’s according to a new WSJ report.

Apple TV+ launched in 2019 and while it has a smaller collection of content for customers to choose from, it’s that decision to avoid the “arms race” that Netflix and other streamers are in, that has allowed it to collect some top-notch movies and TV shows. The recent Oscars wins for CODA show how important that decision has been — the movie cost Apple TV+ a cool $25 million, a record for Sundance after the movie premiered there in January last year. The movie went on to become the first from a streaming service to win the coveted Best Picture Oscar this past weekend.

The move into streaming TV content was one that Apple hoped would help diversify its services revenue, something that it has managed to do — despite Apple TV+ being a relatively small portion of the overall Apple services business.

While the streaming service, which costs $4.99 a month, makes up a small portion of those revenues, it has grown steadily since its launch. Revenue for Apple TV+ nearly doubled in its fiscal 2021, which ranges from October to September, compared with its fiscal 2020, to an estimated $2.2 billion, according to Toni Sacconaghi, an analyst for Bernstein.

CODA is far from the only Apple TV+ name to do well in terms of industry praise and awards, of course. Ted Lasso is a massive hit while The Morning Show and For All Mankind have been winners in their own right, too. And priced at $4.99 per month, Apple TV+ is cheaper than the competition. Another factor that could help it gain, and then keep, subscribers. The move into live sports with Friday Night Baseball certainly won’t hurt its chances, either.

If you want to enjoy Apple TV+ in style, be sure to check out our list of the best Apple TV deals on the market today.

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