Apple (NASDAQ:AAPL) recently showcased season four of the captivating space drama, “For All Mankind,” at the New York Comic Con. The tech giant is gearing up to launch the latest season on November 10, exclusively on Apple TV+, with one new episode set to premiere every Friday until January 12, 2024.
Despite having fewer subscribers compared to industry giants like Netflix (NASDAQ:NFLX) and Disney (NYSE:DIS), Apple TV+ has been steadily making a name for itself, thanks to its impressive content library. This includes popular shows like “Ted Lasso” and its animated film, “The Boy, the Mole, the Fox and the Horse,” which clinched an Oscar for Best Animated Short Film earlier this year. In the previous year, Apple took home three Academy Awards for the film “CODA.”
Apple’s remarkable success at the Academy Awards has played a crucial role in elevating the profile of Apple TV+ in the fiercely competitive streaming market, currently dominated by Amazon (NASDAQ:AMZN), Netflix, and Disney+.
According to a recent report by JustWatch, during the January-September 2023 period, Apple TV+ increased its market share by 1%, reaching 7%. Amazon Prime Video maintained the top spot with 22%, followed closely by Netflix at 21%. Disney+ saw a slight decline, losing 1% and landing at 12% market share.
Apple TV+ is enjoying the benefits of a continuously expanding content library. An eagerly awaited project, “Masters of the Air,” is a World War II drama based on the true story of an American bomber group. The series is executive produced by renowned figures like Steven Spielberg, Tom Hanks, and Gary Goetzman, who were also behind the successful productions “Band of Brothers” and “The Pacific.”
Apple TV+ Expansion and Its Impact on the Market
Apple’s stock performance has outperformed Netflix and Disney, albeit trailing behind Amazon. Apple’s shares have returned 39.1% year-to-date, whereas Amazon and Netflix have posted returns of 57.1% and 22.6%, respectively. Disney’s shares, on the other hand, have dipped 2.9% in the same period.
Apple is ambitiously expanding its presence in the entertainment industry with plans to invest $1 billion in movie production. The tech giant has also partnered with Paramount for the distribution of its upcoming film, “Killers of the Flower Moon.”
The rising popularity of Apple TV+ and other services such as Apple News and Fitness+ has been a significant boon to Apple’s Services business, which has become a substantial revenue generator. The Services portfolio now boasts over 1 billion paid subscribers and contributed 25.9% of sales in the fiscal third quarter. Services revenues for Apple increased by 8.2% year-over-year to reach $21.21 billion.
In the upcoming fiscal fourth quarter, Apple anticipates an acceleration in the year-over-year performance of iPhone and Services, building upon the momentum from the previous quarter. The Zacks Consensus Estimate for the fourth-quarter fiscal 2023 revenues in the Services segment is estimated at $21.33 billion, indicating an 11.2% year-over-year growth. Apple’s focus on expanding its content offerings and the growing popularity of its services is poised to shape its future success in the competitive streaming landscape.
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