I was recently asked for my thoughts about a number of the recent Apple Event announcements. From Apple’s original content strategy, monetization, advertising and more. Here is the published article.
Here was my full commentary on the topic:
(Ad Exchanger) Is what Apple planning a Netflix killer?
(TOM) Apple wants to be the Sherpa and curator of content. Their new recommendation engine is more about aggregation across subscriptions vs. being a content killer. I found it interesting that they are still maintaining partnerships with big cable providers while still differentiating through per channel subscriptions. This isn’t a Netflix killer, but Apple understands that moving forward individuals want control over their experiences and multiple subscriptions will exist. They want to be the “Google Search” of entertainment. This keeps their hardware and services sticky throughout.
With Apple TV+ original content, Apple is focusing on creating programming that will create affinity within their services as well. I would not call this a Netflix killer, but it’s a first step to not only control the navigation of content, but also become a destination as well.
What makes sense in your view for Apple from a monetization standpoint for its original content and its foray into TV?
(TOM) What came through loud and clear from today’s event is Apple’s focus on allowing the consumer to ultimately control their entertainment options. By providing bite-sized subscription services across their ecosystem they gain a consistent stream of revenue that is scalable and minimizes risk of hardware cycles.
It’s yet to be determined how much revenue Apple TV+ will drive in terms of new subscriptions, but with the amount of talent that was showcased, including Oprah, Steven Spielberg, Jennifer Aniston and so many more providers, it just takes a few shows to catch on to drive monetization of original content.
What are your thoughts about how Apple will deal with advertisers/advertising, what a rev share might be if ads are one of the monetization options?
(TOM) I have not heard anything yet about how Apple will deal with advertisers/advertising. One recurring theme was re-emphasizing on device data processing and less information being available to 3rd parties. Apple may be less inclined to leverage an advertising-based model as they dive into recurring revenue with subscriptions.
This doesn’t mean the end of advertisers with Apple. As with any program, driving awareness will need to occur outside of the Apple TV+ ecosystem. This is through content, traditional & performance-based advertising. Advertisers will need to focus on other affinity-based channels to connect audiences with programming.
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