Entertainment World Apple Tv+ Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers – Variety

Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers – Variety



Apple has said it wants to bulk up revenue from services — including Apple TV Plus, which is just over one year old. But new research suggests that the tech giant’s entry into the so-called “streaming wars” is at a distinct disadvantage compared with rivals.

In the fourth quarter, the majority of Apple TV Plus subscribers — a whopping 62% — said they were on the free promotional offer that Apple extended to buyers of its hardware devices, according to research firm MoffettNathan’s Q4 2020 SVOD Tracker report. What’s worrisome for Apple: 29% of those said they do not plan to resubscribe once the promo period expires; only 30% said they plan to renew at the regular $4.99/month price (and the rest were unsure).

By comparison, 16% of Disney Plus users said they access the service via the Mouse House’s promotional partnership with Verizon. About 23% of HBO Max subscribers said they access the service via AT&T’s promotions that provide free access to customers on the telco’s best wireless, video and internet plans (and for the priciest packages, HBO Max is bundled in as a permanent perk).

Almost half of Disney Plus subs on the Verizon promo (48%) said they planned to resubscribe after the free-access period rolls off; just 19% saying they do not plan to renew. The data suggests that roughly 18% of Apple TV Plus subscribers plan to churn off the service once their promotional offer ends, versus
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