Apple TV wants to go big

it is stepbackA weekly newsletter that presents an essential story from the tech world. Follow Andrew Webster for more on the streaming competition. stepback Delivers to our subscribers’ inboxes at 8am ET. opt in for stepback Here.

Apple wins Oscar in 2022. The Mac and iPhone maker makes a splash by winning Best Picture with indie darling codeA remake of a French-Belgian film about the only hearing member of a family with a struggling fishing business. It was made with a modest budget of around $10 million, and yet despite its relatively modest beginnings, for a time the film was a showpiece for one of the world’s most valuable companies and a breakthrough in the field of film and television.

success of code This is indicative of Apple’s streaming service as a whole. Although it earned praise and respect, it was not exactly a mainstream hit. Awards do not necessarily equate to viewership. And while the Apple TV has a number of acclaimed shows and movies, that hasn’t translated into a big share of the streaming market yet.

Since its debut in 2019, the Apple TV has largely been a curiosity, an effort focused more on prestige than scale and profits. While other streamers are vying for market share, Apple is content to use its streaming service to bolster its image. This resulted in the service experiencing few major successes for years, and it also suffered from a lack of content compared to its competitors. Unlike Netflix or Disney, Apple certainly hasn’t tried to boost its library by bidding on streaming rights to hit movies Friend Or OfficeInstead it has focused primarily on original programming that you can’t find anywhere else,

It took years of more misses than hits for Apple to get to where it is today: a comparatively small streaming service that nonetheless boasts a solid lineup. For TV this means mainly prestige dramas, especially in the realm of science fiction, with splashy adaptations such as space epics. foundationBeloved hits like Surreal Mystery Box separation, And recent successes like End of the World Drama Pluribus From breaking bad Producer Vince Gilligan. Meanwhile, its film slate includes the likes of code With new films from iconic and influential directors including Spike Lee, Sofia Coppola and Martin Scorsese (who also played a memorable role in Apple’s Hollywood satire) studiowhich dominated the Emmys this year). There have definitely been some glitches (see: gorge And Argyll), but a focus on quality above metrics has helped Apple carve out a niche in what is at least a very crowded space.

But that may change. perhaps excited by mainstream success ted lassoor pressure from top executives for higher returns on investment, Apple has been taking some steps recently that are clearly aimed at bringing its streaming service to a much larger audience.

First, it has a new name, going from Apple TV Plus to straight Apple TV. It may remove just one word – thus giving the service a more streamlined title – but Apple is calling it much bigger, calling it “a vibrant new identity.” Apple then went to great lengths to make its point: The company hired musician (and Billie Eilish’s brother) Finneas to create a new intro sound that plays before every show and movie, and even created a new intro sequence using real glass.

Perhaps more illustrative of this new effort are a pair of deals recently announced by Apple. Starting in October you can get the service bundled with Peacock, which on the surface is an odd combination. From Apple you have iconic dramas like the spy thriller slow horsesAnd with Peacock you have like reality TV love islandBut actually it is a clever game, Instead of filling the perceived gap in its library by licensing network TV shows, Apple is teaming up with another streamer that offers many things it doesn’t, It’s like subscribing to cable for both HBO and NBC,

A similar thinking is behind Apple snatching up the exclusive US streaming rights to Formula 1 racing. Live programming, and especially sports, are the next frontier in streaming, which is why everyone is getting in on it. Netflix has boxing and the NFL, while Amazon also streams hockey, basketball, and the NFL. Apple made its first big move in this area with a deal with Major League Soccer, which got a big boost when Lionel Messi decided to ply his trade in Miami. And starting next year, MLS matches will become part of a base Apple TV subscription, available at no additional cost.

But a five-year deal with F1 is a big game, because it means exclusive rights to the highest level of a particular sport (sorry, MLS fans). And like MLS in 2026, F1 will also be available as part of the standard service Break in And shrink(The partnership also follows Apple’s biggest film success to date, the Brad Pitt vehicle F1 Moviecoordination!)

And like most streamers, this expanded library of content comes with a price increase; Apple TV subscriptions increased by $3 per month in August, a huge demand for a service with a smaller lineup than its contemporaries. At the same time, there are some questions about what kind of programming Apple plans to offer, which generally stays away from controversy. Jon Stewart had a disagreement over what topics he could cover on his show, which is reportedly why it ended in 2023, and the series was delayed Sawant — a thriller about domestic terrorism — still doesn’t have a premiere date, despite originally being scheduled to stream in September. Apple still lists it as “coming soon”.

In themselves, none of these steps are particularly important. But overall they point to a change in Apple TV’s positioning as a clear attempt to expand on the service’s existing base and reach a new, larger audience.

But don’t expect Apple to stop chasing awards and fancy names. It seems Tim Cook loves posing holding an Emmy, and who can blame him; Not many tech CEOs get that opportunity. Apple portrays itself as a purveyor of quality goods and experiences, and it’s the famous names and awards that drive that message home in the entertainment world.

So instead, changes for the Apple TV will almost certainly continue to be gradual. Another sports deal here, a new series with mainstream appeal. Heck, despite having a very clear ending in its third season, ted lasso And coming back for more, because Apple doesn’t want to give up on its most widely appealing series. That’s not taking away from what the streamer has done so far, but it Is Trying to strengthen it.

The real question is what the Apple TV will look like in a year or two. Now, it’s far from the biggest streamer, but it is one with a distinctive and curated output. Netflix is ​​the strongest player in the sector in terms of net subscriber numbers and has managed to perform quite well for all potential audiences, expanding from things like stranger things For boxing matches and live talent shows. But for everyone else, that strategy has proven a struggle. Just look at what happened when HBO tried to become Max.

Apple will need to balance this push for a larger audience with its core strength of premium programming. That’s why the company is taking these small steps toward new audiences instead of shaking things up completely. The Apple TV may have lost its Plus, but its future depends on not losing what made it special.