Apple TV+ has been growing around the world as the platform invests in new exclusive content. However, while the release of highly anticipated movies and TV shows result in multiple new subscribers, most of them abandon the platform after a while.
Based on a research from Antenna provided to the Wall Street Journal, companies behind streaming services need more than just releasing content that gets media attention to retain subscribers.
As explained by the research, streaming services receive a large number of new subscribers when a new movie or show premieres on the platform. However, data shows that most of these customers cancel their subscriptions after a few months as they no longer find the streaming service attractive.
For instance, Apple TV+ gained several new subscribers on the premiere day of Greyhound (2020), a highly anticipated World War II movie starring Tom Hanks. But according to Antenna, half of these new subscribers canceled their subscriptions within six months. Similar moves happened with major premieres on HBO Max and Disney+.
Film industry analyst Michael Nathanson argues that companies need to release big theatrical films or anticipated shows every quarter to make a streaming service more appealing.
“You constantly need new content,” said Michael Nathanson, an analyst for MoffettNathanson. Streaming services not only have to build vast libraries of old shows and movies, he said, they also “need a couple big, nice theatrical movies every quarter to make it feel like it’s really valuable.”
While Apple TV+ already has more than 100 titles available in its catalog, the number is low compared to other major streaming services. The company has been investing in popular franchises to make its platform more appealing to subscribers, including a live-action series of Godzilla and Titans and the show based on Isaac Asimov’s science fiction book series Foundation.
A report from 2021 revealed that Apple wants to release at least one new piece of content per week on Apple TV+, so perhaps this will put Apple’s streaming service on a par with other platforms. At the same time, Netflix releases at least one highly anticipated movie or show every month, which certainly makes customers keep their subscriptions longer.
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