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Apple Inc is having discussions about licensing more films from major Hollywood studios as it looks to bolster its Apple TV+ streaming service, people familiar with the matter said.
The iPhone maker has spoken to several of the largest studios about acquiring more programming from their libraries to offer customers both in the US and abroad, said the people, who asked not to be identified discussing private negotiations. A representative for Apple didn’t respond to a request comment.
While most other streaming services have offered customers a mix of splashy new series and deep libraries of old TV shows and movies, Apple has built its paid streaming service almost entirely around original productions. It has scored a few breakout hits, such as the soccer comedy Ted Lasso and the TV news drama The Morning Show, and this week received 72 Emmy nominations, the most in its history.
But the big hits have been few and far between and many of its original films, such this year’s spy action picture, Argylle, have been duds. Just 11 per cent of US households use Apple TV+, compared with 55 per cent for Netflix Inc, according to the research firm MoffettNathanson LLC.
Customers are far less likely to cancel a service that they watch more. Netflix, which offers thousands of titles, suffers the lowest rate of cancellation of major streaming video services, according to Antenna, while Apple TV+ is on the higher end.
Apple licensed about 50 movies from Hollywood studios earlier this year in the US, adding classics such as Mean Girls and Titanic. That experiment went well enough that Apple has gone back to many studios for more, either to license those titles internationally or to add more.
Hollywood studios have been waiting for Apple to add more older programs. As Wall Street’s focus has shifted from subscriber growth to profitability, many entertainment giants have embraced such sales as a way to boost their revenue. Companies including Warner Bros. Discovery Inc. and Walt Disney Co have become more open to licensing programs to competitors.
More stories like this are available on bloomberg.com
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