Apple TV+ to Reduce Losses by Licensing Movies to Other Streaming Services
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Apple TV+ has had some limited success with its original films and television series, although, like several other streaming services, it has struggled to gain a foothold in the streaming business. Now, a Bloomberg report claims Apple will begin licensing its film content to other streamers in an effort to save money and improve the visibility of its content.
Bloomberg’s Lucas Shaw says Apple has hired an executive to license its original films to other streaming companies, such as foreign television networks and stores, where viewers can either rent or purchase the content. Shaw says his information comes from the usual source, a “person familiar with the plans.” However, at the moment, the Cupertino company will not license its original TV series to any third parties.
Shaw reports that Maria Ines Rodriguez, who previously worked at Disney and Comcast Corp.’s NBCUniversal, was hired by Apple earlier this year to work on content distribution. A job posting from earlier this year said Apple was looking for someone to “develop and implement a global strategy to enhance revenue for Apple TV+’s award-winning original content off Apple platforms.”
As we reported in October, Apple CEO Tim Cook and services head Eddy Cue have been pushing the Apple TV+ team to lower costs to help improve the service’s financial performance while also delivering more hit films and shows. Apple is also pulling the reins back on its ambitious plans to release its films in theaters before streaming them exclusively on its Apple TV+ streaming service.
While the company has spent billions of dollars on original films and TV series and has received praise from critics, few of its titles have attracted a large audience, and its streaming service does not yet make a profit.
For example, September saw the streaming premiere of the George Clooney and Brad Pitt action comedy vehicle Wolfs. Apple had initially planned a wide theatrical release for the film. However, it released the film in only a few theaters for a short time instead (just enough to meet the basic Academy Award requirements) before premiering it on Apple TV+. Even though the film has received mostly positive feedback from critics and audiences, it is believed that Apple decided against a wide release, thanks to the less-than-amazing box office returns of other recent Apple Original films.
Apple also recently agreed to sell subscriptions to its TV+ streaming service through Amazon’s Prime Video streaming service, hoping the increased exposure will increase its audience. By licensing its films (and possibly later, its TV series) to third parties, Apple will generate additional revenue while making its movies available to viewers who don’t yet subscribe to Apple TV+.
While streaming services like Apple TV+, Netflix, and Amazon Prime have mainly avoided selling their content to other services after the film or movie’s initial streaming run, that reluctance appears to be waning. Warner Bros. Discovery, Paramount, Disney, and even Amazon have also begun selling and licensing their originally exclusive titles to other streaming services.
