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Apple TV + (AAPL) delivered quite a performance at the 73rd Primetime Emmy Awards, scoring 10 total wins and nearly sweeping the comedy category with its breakout series “Ted Lasso”. Still, it remains to be seen whether this will translate into another user boom for the nascent streaming platform.
The show was a particularly bright spot for the tech giant, which has struggled to compete with big players like Disney + (DIS) and Netflix (NFLX) – in addition to converting free trial users who signed up through a free promotional offer after purchasing Apple Hardware.
Apple’s platform “needs to gain traction. They haven’t figured it out yet [but its Emmy wins] are a step in the right direction, ”Santosh Rao of Manhattan Venture Partners told Yahoo Finance in a recent interview.
But the analyst warned that “there is still a long way to go” explaining how Netflix, Disney and others spend a large amount of money on original content, unlike the 2-year-old Apple TV +.
Content War $
Just this week, Netflix announced that it will be purchasing British novelist Roald Dahl’s entire catalog, which includes childhood classics from “Matilda” to “Charlie and the Chocolate Factory.”
While financial details have yet to be released, multiple reports believe this is one of Netflix’s biggest buys to date.
And this week, the company announced Part 2 of its pandemic hit “Tiger King”. The controversial series will be set as part of Netflix’s biggest real-life crime roster, which will include four new docuseries and films set through early 2022.
Still, Apple TV + doesn’t seem to have the same content spending strategy. On the contrary, “Apple’s strategy is more quality than quantity,” noted Rao. “They have to produce more hits [like ‘Ted Lasso’] and in other genres as well, so there’s still a lot of work to be done, but the success of “Lasso” certainly helps draw people in. ”
Apple seeks to go further with its content …Santosh Rao, Head of Research at Manhattan Venture Partners
Rao went on to say that Apple TV + does not compete “on a large scale” with other platforms. Alternatively, the service seeks to “go in depth with high class stars” from Reese Witherspoon and Jennifer Aniston to Paul Rudd and Tom Hanks.
Still, high-stakes content wars make it hard to imagine a platform that will be able to survive a crowded landscape without massive franchises like the Marvel Universe – or big titles like “Charlie and the Chocolate Factory” – without talk about a platform that doesn’t have the amount of content consumers seem to want.
“It’s absolutely difficult. You need that scale to really compete and stay sustainable in this industry and be a competitive force in this industry,” Rao said. Only time will tell if Apple will be able to maintain this strategy of “deepening” with top talent, or if the streamer may need to start acquiring content outside of its own production house, a- he added.
Either way, “it’s going to take a long time to really get the recognition they want,” Rao explained.
“There’s no way Apple can catch up with other streamers because these platforms spend billions of dollars more than Apple. [on content.]”
Still, Rao pointed out that streaming is not the tech giant’s core business. Rather, it simply serves as an additional hook to lure customers to the door.
Apple “is coming to this whole market on a different path and with a different strategy, but I think the fact that they’ve won something is a good recognition, and if they come up with more shows like [‘Ted Lasso’], they will keep people engaged in their ecosystem, ”he continued.
Disney’s Subscriber Growth Warning
Meanwhile, Disney shares took a hit on Tuesday after CEO Bob Chapek told the Goldman Sachs press conference that Disney + subscriber growth numbers would slow this year amid the surge in variants. Delta.
Chapek warned that near-term growth projections would be affected by production delays induced by COVID, resulting in less content on the platform and more reasons for consumers to sign up with competitors like Netflix or HBO Max (T).
“This is a temporary hang-up at this point as [Disney’s] the forecast is going, “Manhattan Venture’s Rao said.” I think it’s going to pick up in the following quarters, but it’s hitting everyone across the board. “
Although subscriber dynamics, fueled by the pandemic, are difficult to maintain amid the crowded streaming field, Chapek said he still expects the streamer’s subscriptions to meet his long-term goals.
The company plans to hold a Disney + Day on November 12, the platform’s 2nd anniversary.
Alexandra is a producer and entertainment correspondent at Yahoo Finance. Follow her on Twitter @ alliecanal8193
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