The lack of content on Apple TV+ compared to its rivals is a regular source of discussion and criticism against the service. According to The Hollywood Reporter, some analysts want it to fill this gap by following Amazon in purchasing a major Hollywood studio.
CEO Tim Cook has described streamer Apple TV+’s ambition “to be one of the most desired platforms for storytellers,” singling out comedy series Ted Lasso, drama The Morning Show and the miniseries Defending Jacob as its titles with “significant buzz.” But the streamer is seen by some Wall Street analysts as lacking multiple, regular breakout hits, which has led some to argue for a studio acquisition. Morgan Stanley research released in April found only 8 percent of U.S. respondents said they use Apple TV+, a figure that lags far below Netflix (58 percent), Amazon Prime (45 percent) and Disney+ (31 percent).
Check It Out: Might Apple buy a Hollywood Studio? Analysts Think it Should
Large acquisitions are not Apple’s M&A strategy. To date, Apple’s largest acquisition has been Beats, for $3B.
Dan Ives appears to be a tech industry analyst, not an entertainment industry analyst. There are those in the latter group who question Amazon’s MGM purchase, calling it “half a studio,” and a waste of money.
“Back catalog” sounds sexy, but in truth, the only sexy parts of them are the standout franchises, like a Friends or a Seinfeld. The rest is filler, and doesn’t drive subscriptions. Anyone who was an early adopter of Netflix, or Prime Video will recall that sad state of those catalogs early on. Netflix bootstrapped itself based on DVD rentals of new releases, and Prime with free Amazon shipping.
It took time, and a lot of money for those services to develop original content that would attract subscribers. That’s the strategy Apple is taking, and since services aren’t its primary business, it can afford the time and money to build its service organically. It’s not going to rush into buying a used car to get around, when it has a garage full of other cars to rely on.