Is Apple TV the new HBO?

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To quit. Pachinko. It is not. Ted Lasso. Over the past few years, several Apple TV shows have been loved by audiences and critics alike. And yet, compared to the size of other subscription services, Apple TV still makes a dent.

At Nielsen The Gauge’s latest reportApple’s service also failed to make the top 10 list of the most used television services, meaning that its audience is not only Netflix and Disney Plus, but also Tubi, HBO Max, and The Roku Channel.

New information released by the registration of the beginning of Antenna last week shows that this may not be a contradiction at all: Apple’s video participation is mainly driven by several anchor shows, according to the new Antenna. State of Subscriptions Reportwhile Netflix viewing is more spread across multiple genres.

The report estimates that 32 percent of what the company ranks as prime viewers watched the Apple TV app. Decrease in March this year, when 31 percent watched the event Monarch: Legacy of Beasts. On Netflix, only War Machine it was watched by 25 percent of the viewers, while all other titles remained below 20 percent.

“Great content tends to be watched more on Apple TV,” the report says. “Netflix’s affluent viewers are spread across the board, showing increased consumption rather than concentration.”

A few of the tentpole names that attract people and become a cultural moment: They are the major cable networks like FX, HBO, and Showtime that have depended on them for years. It’s another of a number of subscription video services that tried to make a brief comeback in the streaming years as they sought to compete with Netflix.

When HBO Max first launched in 2020, it was all about expanding HBO’s brand and streaming strategy into search. Then, WarnerMedia merged with Discovery, which brought reality TV viewing, disrupting value propositions. The project was briefly retitled as Max to appeal to a wider audience, but Warner Bros. Discovery rejected this change last year.

Similarly, Disney tried to give its advertising services more of a traditional TV look when it launched FX on Hulu FX on Hulu is supposed to feature shows that previously aired on cable, as well as Hulu’s original FX. However, it turned out that implementing a value model within a service that contained everything was easier said than done. The company also canceled the “FX on Hulu” trademark and only used FX as a product group along with others, such as ABC, Hotstar, and Freeform.

Which begs the question: If being a streaming HBO didn’t work for HBO, could it work for Apple TV?

“Making a big deal against an audience you know well is a business model,” said Paul Pastor, chief business officer of Quickplay, which develops streaming software and infrastructure for media companies such as MSG and Gray Media. “They’re doing really well with their videos,” he adds.

Some of the differences between Apple TV and Netflix can be explained by the size of the books. Apple TV currently offers subscribers access to approximately 220 movies, according to JustWatchwhile the Netflix series has about 3,300 shows.

However, Abosa also believes that Netflix is ​​more interested in presenting unknown gems to its audience. “They found a way to manage this through their thinking and personalization systems,” he says. “They are focused on their technology platform.” (Abusa’s company is pitching AI-powered personalization solutions to streaming service providers.)

Shepherd admits that Apple has a few advantages that allow the company to stick to the HBO model for its streaming service.

For one thing, Apple has a different business model than most of its competitors. Apple TV is the only major streaming service that does not have an ad-supported feature, and Apple as a company has a large business of devices that allow it to do important things. This includes using Apple TV as a gateway to resell other services.

The case: When you turn on your Apple TV or browse the Apple TV app on your iPhone, you can access Apple TV shows, as well as third-party content from services like Hulu, HBO Max, or Prime Video. And when you subscribe to these services through Apple devices, the company grows big business already.

“At the end of the day, Apple is also an integrator,” Shepherd says. “This could be a very good business opportunity for them.”

The best business strategy here, yes. If only the company would accept the Apple TV ad, as it has been rumors for some timeit could embrace a Netflix-like format with a broader catalog, more content, and less focus on tentpole titles. Advertisers want growth, but the ad-supported segment could also significantly change Apple’s corporate image. Currently, the company makes money with monthly payments, regardless of how much each subscriber views. With an ad-supported feature, every additional time an ad is displayed generates additional revenue.

Until that happens, Apple TV might be the next best thing to HBO. Sorry, HBO Max.