Apple TV+ has carved a niche for itself with strong original programming, and while it's still far behind the likes of Netflix in terms of subscribers, it has seen a fairly strong initial run. To build on that, Apple is talking with major studios about ways to complement its slate of original programming with films from other companies in order to expand and extend the service's appeal.
That's according to Bloomberg reporters Lucas Shaw and Thomas Buckley, who cite people familiar with Apple's workings. Those sources say Apple is "having discussions" with more than one large film studio about bringing more movies to the service.
Apple previously experimented with this by licensing around 50 movies and making them available on the service for limited runs over the past several months. That experiment seems to have gone well, leading Apple to begin laying the groundwork for expanding on that.
That test run was just in the United States. Bloomberg claims the focus this time is international, with the possibility of new films not just in the US but in other regions, too.Hollywood studios have reportedly been anticipating this move. As you may have noticed amid the numerous subscription service price hikes, media companies have begun putting greater emphasis on profitability after the conclusion of a long period where subscriber growth at any cost was the goal. Licensing deals like this can help with that new goal.
It's worth noting that while Apple has found some big successes in terms of series (Ted Lasso, Severance, The Morning Show) it has struggled to make as much of an impact with its movies. Despite big stars and budgets, the films have not always made as much cultural impact as the shows, beyond some award wins.
That means that bringing in films from studios with a more proven record can be a win-win: It will help Apple bolster the TV+ subscription service while generating revenue for film studios that are struggling to keep up in the new era.
Services like TV+ are a growing part of Apple's business, which has historically been focused on hardware sales. In the second quarter of its 2024 fiscal year, the services bucket accounted for $23.9 billion in quarterly revenue, which is more than half the revenue generated by iPhone hardware sales.
