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Apple Inc. is negotiating with major Hollywood studios to license films, aiming to expand its Apple TV Plus library and attract more subscribers worldwide.
Key Points
- Apple is negotiating with Hollywood studios to license more films for Apple TV Plus.
- The strategy aims to expand Apple’s library and attract more subscribers.
- Apple TV Plus has focused on original content, but seeks to include more popular films.
- Previous licensing experiments with movies like “Mean Girls” and “Titanic” were successful.
- Hollywood studios are increasingly open to licensing deals as they seek profitability.
Apple Inc. is in discussions to license more films from major Hollywood studios as it seeks to bolster its Apple TV Plus streaming service, according to sources familiar with the matter. The iPhone maker has approached several of the largest studios about acquiring programming from their libraries to offer to customers in both the US and abroad. Representatives for Apple did not respond to requests for comment on these private negotiations.
Unlike most other streaming services that offer a mix of new series and extensive libraries of old TV shows and movies, Apple TV Plus has primarily focused on original productions. While Apple has seen success with breakout hits like the soccer comedy “Ted Lasso” and the TV drama “The Morning Show,” which recently earned 72 Emmy nominations, these successes have been relatively rare. Many of Apple’s original films, such as this year’s spy action picture “Argylle,” have failed to make a significant impact.
Market research by MoffettNathanson LLC indicates that only 11% of US households use Apple TV Plus, compared to 55% for Netflix. The data suggests that customers are less likely to cancel a service they frequently watch. Netflix, with its extensive library of thousands of titles, boasts the lowest cancellation rate among major streaming services, while Apple TV Plus is at the higher end.
Earlier this year, Apple licensed about 50 movies from Hollywood studios in the US, adding classics like “Mean Girls” and “Titanic.” The success of this experiment has prompted Apple to pursue further licensing deals, either to make these titles available internationally or to expand its collection with additional films.
Hollywood studios have anticipated Apple’s move to include more older programs in its offering. As Wall Street’s focus shifts from subscriber growth to profitability, entertainment giants are increasingly open to licensing their content to competitors as a way to boost revenue. Companies such as Warner Bros. Discovery Inc. and Walt Disney Co. are among those that have embraced such sales.
The move to license more films represents a strategic shift for Apple TV Plus, aiming to attract a broader audience and compete more effectively in the crowded streaming market. By enhancing its film library with well-known titles, Apple hopes to increase viewer engagement and reduce cancellation rates.
