July 19, 2024 – According to Bloomberg, Apple is actively engaged in negotiations to acquire more film rights from various Hollywood movie studios, aiming to expand the content library of its streaming platform, Apple TV+.
Sources familiar with the matter revealed that while Apple has traditionally focused on producing original content for its streaming service, the company is now increasingly looking to bolster its offerings by purchasing the extensive catalogs of traditional movie studios. Despite the success of original series like “Ted Lasso” and “The Morning Show,” Apple TV+ has relatively few breakout hits, and its library size still lags behind competitors such as Netflix and Disney+.
Since its launch in November 2019, Apple TV+ has positioned itself as a premium streaming service offering high-quality original content. The platform has garnered numerous awards and accolades, including 72 Emmy nominations this year. However, its subscriber base remains smaller than that of its rivals. According to data from research firm MoffettNathanson, only 11% of American households use Apple TV+, compared to 55% for Netflix. The limited size of its content library is seen as a significant factor restricting Apple TV+’s growth. Statistics show that streaming platforms with extensive libraries, like Netflix, have lower user churn rates.
To address this challenge, Apple has begun exploring the purchase of additional film rights. Earlier this year, the company acquired the rights to about 50 films from Hollywood studios, including popular titles like “Mean Girls” and “Titanic.” The positive response to these acquired films has encouraged Apple to seek further collaborations, with the goal of purchasing even more movie rights. Meanwhile, major studios like Warner Bros., Discovery, and Disney are increasingly willing to sell content to competitors as a means of generating additional revenue.
