Results from a new survey claim to offer up a look at how many of Apple TV+ subscribers are still on a free trial, what the future could look like for subs as trials end, and more as Apple TV+ continues to expand its content.
Reported by Variety, a study has been published by MoffettNathan/HarrisX on the state of streaming video on demand services (SVOD) for Q4. The survey results claims to show how Apple TV+ in comparison to other competitors.
MoffettNathan says that 62% of the Apple TV+ subscribers it surveyed are currently on a free trial. While that may not sound ideal, it’s a key part of Apple’s strategy for now – the company just extended free trials for the second time earlier this month as it continues to work on expanding its catalog of content.
However, some potentially bad news – if it pans out this way – is that 29% of those Apple TV+ users said they wouldn’t choose to continue their subscriptions after the free trial ended, 30% said they would, and the remaining said they were undecided about paying $5/month for Apple TV+.
In contrast, MoffettNathan said its survey found 48% of Disney+ subscribers on a free plan would continue the service afterward, suggesting Apple TV+ has higher customer turnover than its competitors by up to 6x.
Almost half of Disney Plus subs on the Verizon promo (48%) said they planned to resubscribe after the free-access period rolls off; just 19% saying they do not plan to renew. The data suggests that roughly 18% of Apple TV Plus subscribers plan to churn off the service once their promotional offer ends, versus 3% of Disney Plus customers on free plans, the MoffettNathanson report said.
MoffettNathan lead analyst Michael Nathanson shared concern about Apple TV+’s churn and limited content:
“We remain concerned about future subscriber churn if there is a slow device cycle and users choose not to renew on their own,” the MoffettNathanson team, led by senior analyst Michael Nathanson, wrote in the report. While Disney and WarnerMedia have been “clear about strengthening their respective content offerings, it seems Apple is still not all-in on making Apple TV Plus originals a focal point.”
Apple doesn’t share official Apple TV+ subscriber numbers, but a report recently estimated it currently has a 3% of the US SVOD market.
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