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Apple TV+ Will License Its Movies To Other Services To Reduce Billions In Losses

According to a new report from Bloomberg, Apple plans to license some of its Apple TV+ content to competing services in an effort to save money and spread its reach. From the report: Apple has hired an executive to license its original productions to other companies, a strategy designed to increase sales from its film business and improve the visibility of its content. [...] Apple is focused on licensing its movies to other companies, such as foreign TV networks and stores, where viewers can rent or buy them, according to a person familiar with the plans. The company isn't planning to license its original TV shows to third parties. (At least not yet.)" Chief Executive Officer Tim Cook and services boss Eddy Cue have pushed the team overseeing Apple TV+ to lower costs, improve the financial performance of the service and deliver more hits. The company has spent billions of dollars on original films and TV shows and has received strong reviews and praise from critics. Yet few of its titles have attracted a large audience and its streaming service doesn't make money. Apple has already started selling TV+ via Amazon in a bid to increase the audience for the service. Licensing to third parties will generate additional revenue and introduce Apple movies to people who don't yet pay for TV+. Since Apple TV+ launched in 2019, Apple has spent over $20 billion to build a library of original content. Yet, the streaming service only garnered 0.3 percent of U.S. screen viewing time in June 2024, according to Nielsen. "Apple TV+ generates less viewing in one month than Netflix does in one day," wrote Bloomberg's Lucas Shaw in July. Ars Technica notes that Apple is estimated to have 25 million subscribers, making it "one of the smallest mainstream streaming services."