Got Apple TV+? Nobody but Apple knows how well the streaming TV service is doing but some are willing to make a guess. I like the shows. So far. Besides, the price is right. Free (with purchase of new iPhone, iPad, Mac, iPod, Apple TV).
Free is good and Apple TV+ just shows up on every device. Guess who else sees Apple TV+ as a winner (despite the dumb name)?
Who is John Malone? He is one of the most important people in the cable TV and media industries.
Few people have the knowledge, experience, and influence in the media distribution industry and he has opinions on everything. Including Apple TV+.
I think Apple’s going to surprise everyone with the numbers they achieve in a short period of time.
They’re in a billion pockets.
Malone acknowledged Apple TV+ is thin on content but knows it won’t matter after a few years. Netflix was thin on other company’s content, too.
Their distribution strategy of essentially anyone who buys anything from Apple gets a free trial for a year. And of course, Apple already has their credit card. So when you start with 460 million credit cards — or 460 million consumer relationships…
Numbers. Big numbers.
…and you give them something for free and they get to use it for a year, and they put it on your bill. That’s a very interesting way to get large numbers fast. And of course, it’s chicken and egg. As they get large numbers, they can gauge what people like, what people don’t like, they can go out and acquire or build more content.
Apple’s numbers matter. 1.5-billion devices in the wild. 1-billion customers.
As an example, I read a report that said Apple would sell 60-million AirPods next year. That is about 6-percent of the company’s customer base. At an average price of, say, $200 each for AirPods or AirPods Pro, and 60-million purchases, that’s an annual run rate of $12-billion.
Let’s say that after a year or three, Apple TV+ gets 100-million paying subscribers at $4.99 a month. Rounding off, that’s $5 a month times 100-million, or $500-million a month; or $6-billion a year.
See how those big numbers work?
Apple CEO Tim Cook does not have Steve Jobs’ vision thing– he was the kind of market disruptions– but Cook is doing OK as the king of iPhone accessories that also disrupt industry’s.
Big numbers matter.