Apple TV+ is not set to be a “Netflix Killer”, according to a new report from Enders Analysis. They do not believe it is unlikely that a large number of Netflix users will cancel their subscriptions and move over. The analysts were also underwhelmed by the details of Apple News+.
Tough Competition, But Hope in UK
The report said:
It is not conceivable that many Netflix users would cancel their subscriptions as a result of Apple’s less-expansive product, such is the value that a Netflix subscription currently offers, especially in the US where TV ARPUs for the biggest three cable suppliers are between £68 and £92 per month.
However, the analysts did find reasons for Apple to have some optimism in the UK. They noted that Subscription Video on Demand (SVOD) services only have 42% penetration there, compared to 60%-70% in the U.S. Furthermore, only Netflix, Amazon and NOW TV have significantly over 100,000 subscribers in the UK. There are, therefore, a large number of potential customers for Apple who have not yet committed to service. They also noted the presence of well-regarded media executive Jay Hunt, who is leading on content development in the country.
Not Much News in News+ Announcement
Elsewhere, the analysts felt there was little to write home about in the reveal of Apple News+. They asked:
Why would a major news or magazine publisher want to help develop Apple’s service business—a development with limited short-term upside for a publisher, and considerable long-term risks?