
Apple TV+ In Talks With Hollywood Studios To License More Movies
Earlier this year, Apple began licensing over classic films from a variety of different studios including Disney, Paramount, Warner Brothers Discovery, Universal and Sony, making them available to Apple TV+ subscribers in the United States for a limited time, in an effort to try to improve engagement on the service and also to offer more value to subscribers.
Some of the Disney movies available on Apple TV+ included “Con Air”, “Fight Club”, and “The Proposal”.
It looks like this initial trial has proven beneficial. According to Bloomberg, Apple is in talks to license more films from Hollywood studios to boost Apple TV+.
One of the many issues that Apple TV+ faces is that it has one of the smallest libraries of content available to subscribers since it doesn’t have the back catalogue of a long-standing studio like Disney, Universal, Warner Brothers or Paramount. However, Apple TV+ does have an incredible collection of new original programs like “Ted Lasso” and “Masters Of The Air”; some of these original programs have also been created by Disney’s ABC Signature Studios and 20th Television.
While Disney makes the majority of its movies and shows available on its own streaming services, Hulu and Disney+, it still licenses some of its content to other platforms like Netflix, BBC, Tubi, ITV, and others, often on a non-exclusive basis to earn additional revenue from licensing.
Disney CEO Bob Iger has spoken out on many occasions about how they are approaching their licensing deals and has said they are unlikely to license out content from their major brands like Marvel, Pixar or Star Wars; it’s very different for films from 20th Century Studios or some of its older brands like Touchstone Pictures.
Roger’s Take: There are many pros and cons for Disney in licensing out its movies. One on hand is additional revenue, especially for older films, which aren’t driving new subscriptions. The negative aspect is that it undermines its own streaming service by making it willing to fuel another platform for short-term gain. However, with Disney needing to increase its revenue, offering up a small selection of movies on a non-exclusive basis for a limited amount seems like a compromise.
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