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Apple TV+ wants to reduce costs: it would be testing an unusual strategy for Apple

A double strategy that, with care, can yield great results

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David Bernal Raspall

David Bernal Raspall

  • November 19, 2024
  • Updated: November 20, 2024 at 10:42 AM

Apple TV+ has been one of Apple’s major ventures to enter the competitive world of streaming. The platform has achieved great successes, such as Ted Lasso, Killers of the Flower Moon, Silo, Wolfs, or The Morning Show, but those productions, and others that could have performed better, cost the company astronomical figures. According to rumors, Apple is looking for ways to adjust costs and expand the visibility of its catalog, especially in international markets. As far as we know, Apple might be testing a strategy that, at least until now, has not been part of its usual philosophy: licensing its movies to external services.

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Apple movies on third-party platforms: A strategic move

According to Bloomberg, Apple has reportedly hired an executive specialized in licensing sales to manage this new plan. The initial goal would be to allow its movies, not its series, to be distributed on third-party platforms, such as foreign television networks or digital stores where these productions can be rented or purchased. This differentiation is important — Apple’s original series would remain exclusive to Apple TV+, at least for now.

This measure could have a dual purpose. On one hand, the company seeks to reduce the losses generated by Apple TV+ and optimize its budget. On the other, licensing movies would help increase the exposure of its content in regions where the platform has not yet gained enough traction. Especially in international markets, this strategy could be key to strengthening Apple’s presence as a creator of quality content and attracting new users to its service.

A bet beyond exclusivity

Movies have been a significant gamble for Apple TV+, but also a complicated field. A few months ago, we learned that the company had changed its release strategy, prioritizing more affordable productions for streaming and minimizing the risk of major theatrical releases. The cancellation of major releases, such as Wolfs, is an example of this change in direction.

In this context, content licensing translates into a considerable cost saving while potentially allowing Apple to continue investing in content creation. The strategy could also have some risks. One of the great strengths of Apple TV+ is its brand image associated with exclusivity and premium quality. Sharing movies on third-party platforms could dilute that perception to some extent, although if managed properly — for example, by carefully selecting which titles to license and under what conditions, Apple could benefit both economically and strategically.

Global expansion and ecosystem strengthening

In international markets, where Apple TV+ has not yet reached the level of notoriety of competitors like Netflix or Disney+, licensing content could be a way to introduce Apple’s catalog to new audiences. The creation of series in other languages and the distribution of movies through local networks or well-known platforms could serve as an entry point for users who are unaware of the service.

Apple TV+ is still in a growth stage, and with each decision, its development is being shaped. Licensing content may seem like something that deviates from Apple’s traditional strategy, but if the company has shown anything, it is that it knows how to adapt to circumstances when the moment requires it.

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Although it will take time to see the results of this decision and whether it actually happens, the truth is that this move could mark a before and after for Apple TV+. The key will be in how the company manages this expansion. Apple is playing the long game, as it always has, but without losing sight of the need to be profitable and relevant in a market as dynamic as streaming.

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