Apple TV+ Faces Dominating Competition from Disney+ in the Streaming Wars

Apple faces daunting competition in the Streaming Wars.

As consumers turn to the SVOD / subscription / “All You Can Eat” video model,  they are cutting back on purchasing and renting programs.

  • Take a look at the 3+ year trend in US Home Entertainment Spending revealed in the chart below from DEG and nScreenMedia:
  • The black line shows the steady rise of the subscription streaming model, led by Netflix and Prime.
  • The Red (Rental) and Blue (Purchase) lines reveal a steadily eroding market.

  • This switch from buying and renting video to subscriptions is most painful for the Apple / iTunes transactional model.
  • Apple is responding with increased urgency: its investment in Originals is ‘ballooning’ to $6 Billion.
  • The goal: bolster the Apple TV+ subscription service that is planned for launch in 2019.

Threat from Disney+ 

  • Apple lacks a powerful library of owned content like its upcoming competitor Disney+.
  • Disney+ launches in November, backed by:
    • The Marvel, Simpsons, Star Wars and Nat Geo franchises
    • Disney classics like Snow White
    • A vast animation library built around legendary characters like Mickey Mouse
    • Its stream of new theatrical releases
    • And a portfolio of cable and broadcast networks that will both originate and promote Disney+.

Apple Counter-move

  • There is speculation that Apple will buy a studio like Sony to access the mix of original content and classic hits that are a critical success factor in the streaming wars.

Read More

  • VideoNuze‘s coverage of the industry context for the streaming wars is always excellent, as in this post and podcast.
  • Watch out for my upcoming posts comparing newcomers Disney+, AppleTV+, HBO Max and NBCUniversal‘s unnamed service — with incumbents Netflix and Prime.