Too Much TV: Your TV Talking Points For Tuesday, July 30th, 2024
An Apple TV+ executive talks about branding, content spent and licensing movies
PRODUCTION NOTES
This is one of those examples of original reporting you won’t read anywhere else. And I would appreciate it if you can share it with other people you think might find it of interest. Cutting through the collapse of social media reach and overall media clutter right now can be a challenge.
ere's everything you need to know about the world of television for Tuesday, July 30th, 2024:
AN APPLE TV+ EXECUTIVE TALKS ABOUT BRANDING, CONTENT SPEND AND LICENSED MOVIES
There have been several stories over the past weeks arguing that Apple TV+ is cutting back and seems poised to move towards a more restrained streaming future. I decided to reach out to a source I've spoken with in the past to see if I could get a bit of insight. I was asked to describe the person as a "senior executive with direct knowledge of content strategy, but not one of the final decision-makers."
Reading some of the recent reporting about Apple TV+, I've been reminded of these comments from our last discussion earlier this year:
Q: But can you talk about what success does look like at Apple TV+? I think most outsiders could define what a successful business at Peacock or Max would look like. However, Apple TV+ and Amazon Prime are a lot more challenging because of the way they're integrated into the mothership business.
A: It's interesting that you brought up Amazon because although they have a very different business than we do, we both have similar challenges. The video business is graded both on how it is doing on a standalone business and also on how effectively it is contributing to the entire business. And that can be complicated to discern even on an internal basis.
I liked the point you made a week or two ago about the reasons why Prime Video is adding a surcharge to its new ad-free business. Because there isn't a separate fee for video, it's one of the few ways Amazon can drive more revenue for its video product without increasing the overall cost of its Prime product. All of that integration comes with its own challenges.
And we have similar challenges. Apple TV+ has a separate subscriber fee, but the integration with other Apple products is a mixed blessing. We're expected to drive business and revenue to the entire Apple ecosystem and that brings its own unique set of goals and roadblocks.
I don't think there is any major streaming service that isn't expected to carry its own weight. But how that success is defined does look very different, depending on the overall business model of the parent company.
I brought up those comments in our email discussion earlier today and that kicked off quite a back-and-forth on Apple TV+'s place in the streaming universe.
Do you still think a lot of people fundamentally misunderstand what success looks like for Apple TV+? I think people in the industry are beginning to realize that the success metrics for streaming aren't the same as for linear TV. But what do you think critics are getting wrong about Apple TV+ and the streaming TV business at large?
Wow, I almost don't know where to start. First of all, I would be skeptical when I read that we've spent X on original content. I know specifics on some of the budgets and have a good sense of the content spend overall and without getting into specifics, I'll just describe the published numbers as "somewhat informed best guesses."
Part of the problem is that spending at any streaming service is more complicated than someone just cutting a check. There can be co-producing partners, or third-party producers can be responsible for more of the costs that outsiders might realize. I'm not minimizing the fact we spend a lot. But sometimes a figure gets out there and every reporter just runs with it.
Is it accurate to say that there is a belt-tightening going on at Apple TV+?
Sure, and some of that is the function of our growth maybe not being where we had hoped. But it's also a reflection of the budget constraints at rival streamers. If they are getting more proactive about spending, then we would be insane to continue operating the way everyone was doing 18 months ago. This is a business that requires near-constant pivoting, but sometimes outsiders read too much into it.
One of the strategic moves that is receiving a lot of attention is Apple TV+'s move to license some outside movies for the service. That has led to all sorts of speculation about what comes next. What is your take on the move?
I hate these stories. Look, as far as I know - and I should know - no one here ever said "We're never licensing movies." What we did say is that we had no plans to do so early on and we were focused on our original slate. We did buy or license one-offs, but strategically it was more important to be seen as a home for distinctive programming.
So what changed?
I mentioned before about constant pivoting and this is probably a good example. One way we can restrain spending is by taking advantage of select licensing opportunities. But if you notice, we're very strategic about the titles we're licensing. They tend to be familiar films, with familiar stars attached. If Paramount has a package of 100 films, there might only be 20-25 that we are interested in. So we'll carve those out into a separate non-exclusive package that has a limited run time. And that generally works for the people licensing the films, because they tend to prefer shorter licensing windows.
When it comes to licensing, we have more in common with Netflix than other platforms. Our licensing reinforces the Apple TV+ branding: star-driven, prestige movies. We're very on-point with the licensing deals and unless something drastically changes, you're not going to see us licensing films simply to juice the catalog size. That's why you haven't seen a big move yet into licensing TV shows. The titles that might be on brand for us are either tied up somewhere else or ones we can't license on the terms we need.
I suspect even people working there would admit that subscriber growth hasn't been what the company hoped it would be. Is that something you can talk about?
It's a complex problem and I think that each service has its own unique set of issues. One unexpected challenge for us is that an amazing number of people think you somehow have to own a bunch of Apple devices to use Apple TV+. I had someone tell me they wanted to subscribe, but they only owned a Roku stick. It's tough because we want to keep people in the Apple universe and we would prefer they use something like an Apple TV. But I think that desire has sometimes gotten in the way of overall growth. But that's not my call.
In the coming year, you're going to see an increased emphasis on international growth as well as more telco partnerships. And while I don't have any first-hand knowledge about a timeline, I won't be surprised to see an ad-supported tier rollout. It helps maximize revenue from a smaller subscriber base and our demographics make the audience valuable. But I think Amazon's rate-cutting right now might push that timeline back a bit.
Are you optimistic about the future?
I would be a terrible executive if I said no. But I am. We have a unique niche and while we can argue about content spend and strategic priorities. But we also have a strong brand and some of the best originals in the business.
ODDS AND SODS
* CNN Originals has ordered the six-episode travel series My Happy Place, featuring different celebrity hosts as “they venture to a personally meaningful place in their lives.” It is set to premiere next year.
* Disney+ has canceled Renegade Nell after one season.
* Apple TV+ has set the two-episode premiere date for the Spanish-language medical drama Midnight Family for Wednesday, September 25th. According to the streamer, "Midnight Family follows Marigaby Tamayo (Renata Vaca), an ambitious and gifted medical student by day, who spends her nights saving lives throughout a sprawling, contrasted and fascinating Mexico City aboard her family’s privately owned ambulance. Along with her father Ramón (Joaquín Cosío) and her siblings Marcus (Diego Calva) and Julito (Sergio Bautista), Marigaby serves a population of millions by tackling extreme medical emergencies to make a living."
* Erica Ash, the Mad TV alum who also starred in Real Husbands Of Hollywood and Survivor’s Remorse, has died after a long battle with cancer. She was 46.
* Acorn TV has renewed the Jane Seymour Irish mystery series Harry Wild for a fourth season.
* CBS Evening News anchor Norah O'Donnell announced today that she is leaving her anchor role after the 2024 presidential election to become a senior correspondent and host her own interview-style show that will air on CBS and Paramount+.
* The part three premiere of Netflix's That 90s Show has been moved up from to August 22nd from October 24th. I am assuming that means the show likely won't be renewed.
* 90 Day Fiance: Before The 90 Days returns for a new season premiering Sunday, September 1st on TLC.
* Hulu announced Tuesday it will release Fanatical: The Catfishing of Tegan and Sara, a new documentary investigating the 2011 file hacking of the musical duo Tegan and Sara.
WHAT'S NEW TONIGHT AND TOMORROW
TUESDAY, JULY 30TH:
* Betrayal (Hulu)
* Frontline: Germany's Enemy Within (PBS)
* Grand Tour Of Switzerland Series Premiere (MHz Choice)
* Legendary Grand Hotels Series Premiere (MHz Choice)
* Murder In...Season Thirteen Premiere (MHz Choice)
* Under The Radar: Secrets Of A Swedish Serial Killer Series Premiere (Viaplay)
WEDNESDAY, JULY 31ST:
* Mountain Queen: The Summits Of Lhakpa Sherpa (Netflix)
* Ms. Pat Settles It Season Two Premiere (BET)
* Unsolved Mysteries Season Premiere (Netflix)
* Women In Blue (Las Azules) Series Premiere (Apple TV+)
SEE YOU ON WEDNESDAY