The company’s video streaming service Apple TV + is about to launch a training round.
Apple TV + costs $4.99 per month. It is also bundled with other Apple services such as music and iCloud, called Apple One, and starts at $14.95 per month. But many subscribers do not pay.
Apple gave away a large number of Apple TV + subscriptions to activate the service. Starting in September 2019, anyone who purchases an Apple product (iPhone, iPad, Mac, Apple TV or Apple Watch) can get a year of Apple TV+ for free. During the pandemic, Apple twice extended offers for those whose trial period was about to expire.
According to survey data released by Moffatt Nathanson in January, most Apple TV+ subscribers are still in promotional offers, and 62% of current subscribers access Apple TV+ through promotional packages. Apple did not disclose how many subscribers the service has, but since the end of 2019, it has sold hundreds of millions of iPhones and other devices.
Now Apple is starting to give Apple TV+ subscribers off the free plan.
On July 1, those who purchase Apple products will be eligible for only 3 months of Apple TV+ for free instead of one year, and those who have already charged for the trial will not be able to get it again. Also in July, the first batch of subscribers to activate promotional offers will automatically start charging service fees after nearly 21 months of free access to their programs.
This is a good test for Apple.
Will the millions of users who are currently on a free trial end up registering for Apple’s $5 monthly service or bundled service because they cannot do without Apple programs? Will it be cancelled?
Others may have simply forgotten that they are on trial, and will not immediately notice the new charges.
Steve Cason, an analyst at Parks Associates who pays attention to the streaming media industry, said that Apple’s reduction of dependence on free Apple TV + trials was a “turning point” for the service.
“For newer or smaller services, partnerships and promotions are valuable tools for acquiring customers,” Cason said. “A large percentage of people continue to move forward. They really like the service and will continue. Or they forgot that they provided a credit card to the service.”