Apple Looking to License Movies for Apple TV+, Warner Bros. Discovery Thinking of Splitting Itself, Skydance Merges With Paramount
Given a busy news flow, we are going to stay in video streaming land for one more update. We begin by going over a report pegging Apple as looking to license more movies for Apple TV+. The discussion then turns to Warner Bros. Discovery, Skydance, and Paramount.
Hello everyone.
Two quick notes:
1) With Netflix reporting earnings a few hours ago, the CY2Q24 tech earnings season has officially begun. We still have some time before preparing for Apple earnings. One thing that has been on my to-do list is take a fresh look at the business performance (i.e. cash flow) for paid streamers as they report this earnings cycle.
2) Earlier today, Apple issued a press release detailing new Apple Immersive Video content that will be coming to Apple Vision Pro. We briefly talked about the new series and films last month as they were highlighted during the WWDC presentation. As some Above Avalon members speculated would be the case, Apple timed the release to coincide with Apple Vision Pro being available internationally. If any interesting observations come from the new content, we will talk about them in these updates.
Apple Looking to License Movies for Apple TV+
Here’s Bloomberg:
“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…
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.”
This is the type of rumor that can be easily misidentified and misconstrued. There is no evidence of Apple changing strategy and looking
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Peter Stern Departs Apple, Apple’s Services Reorganization, My Concern With Warner Bros. Discovery (Daily Update)
Hello everyone. Today’s update kicks off with Neil’s thoughts on Peter Stern departing Apple. The discussion then expands to talk about Apple’s Services reorganization. We conclude with some qualutiative takeaways from Warner Bros. Discovery’s most recent earnings call. Neil has a concern with the company’s strategy. Let's jump right in.
Peter Stern Departs Apple
In an article published back in January, here’s Claire Atkinson over at the Insider:
“One of Apple's top subscriptions executives is exiting the company.
Peter Stern, who had been helping establish Apple's presence in sports rights in addition to running Apple TV+, has informed colleagues that he is exiting Apple to spend more time on the East Coast, according to a source close to the executive. Stern, whose title is VP Services, is leaving at the end of the month.
Apple is reorganizing its Services unit, and Stern's responsibilities will be split into three separate divisions, according to two people familiar with internal conversations at Apple. The shape of the restructure is still being negotiated, but one of those executives will be Oliver Schusser, who is currently in charge of Apple Music; another is Robert Kondrk, whose current title is VP, Apple Product Services and Design.
Stern, who was widely tipped as a possible successor to Apple's SVP Services, Eddy Cue, was in charge of a broad swath of the company's subscription businesses and was largely responsible for building the business operations of Apple TV+. He is one of about 20 direct reports under Cue.
During his six-year tenure at Apple, Stern helped build subscription products such as Arcade, Books, and Apple One, News+, Fitness+, iCloud+. Before that, he was an exec Tim Warner Cable.”
We will talk about Apple’s Services reorganization shortly.
It’s not clear where the “widely tipped as a possible successor to Apple’s SVP Services, Eddy Cue…” comes from. Yes, Stern was a VP and Apple made him available to speak to outsiders/press. However, claiming Stern was some kind of de facto Cue successor feels off.
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Additional Thoughts on Apple’s MLS Season Pass, Playing Devil’s Advocate With Warner Bros. Discovery (Daily Update)
In today’s update, Neil examines a few follow-ups to yesterday’s discussion. We begin with how success for Apple and its MLS Season Pass streaming service will be measured. The discussion then turns to Warner Bros. Discovery and the ongoing rumors that David Zaslav is ultimately trying to sell the company. Neil puts his devil’s advocate hat on to examine the argument for Warner Bros. Discovery M&A.
Hello everyone. There are a few follow-ups to yesterday’s discussion that are worth pursuing in today’s update. Let’s jump right in.
Additional Thoughts on Apple’s MLS Season Pass
What will success look like for Apple with MLS Season Pass, its upcoming paid streaming service for U.S. soccer?
Soccer in the U.S. is not the NBA or NFL. It’s certainly not English Premier League either. Those aren’t controversial statements. Based on viewership data, U.S. soccer has 500,000 to 600,000 regular fans. When considering other countries, we can add a little bit more to the total. The NFL sees multiple times (i.e. 10+) that number with the NBA and English Premier League at more like a few times over that range on a per game basis.
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Apple Unveils MLS Season Pass, Warner Bros. Discovery 3Q22 Earnings, David Zaslav’s Big Bet (Daily Update)
We kick things off by going over new details regarding Apple’s upcoming streaming service for Major League Soccer (MLS). Neil compares Apple’s subscription pricing to his estimates and what it suggests about Apple’s subscriber goals. The discussion then turns to Warner Bros. Discovery 3Q22 earnings and the bet Neil sees CEO David Zaslav making in the video content space.
Hello everyone. Happy Wednesday.
Today’s update will have a content streaming focus. We will begin with Apple providing details on its upcoming Major League Soccer (MLS) streaming service.
Let’s jump right in.
Apple Unveils MLS Season Pass
Back in June, Apple made waves by announcing a 10-year streaming rights deal with Major League Soccer (U.S.) Apple was attracted to the idea of having all matches available in one location. It’s a novel idea in an industry that is used to disjointed distribution and things like blackouts.
Earlier today, Apple provided via press release many of the missing details about the standalone streaming service which will be called MLS Season Pass.
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The daily updates have become widely read and influential in the world of Apple and technology. They are unmatched in the marketplace in terms of comprehensive analysis and research on all things Apple. Members reside in 60 countries and hold a diverse range of backgrounds and occupations. They include Silicon Valley executives and investors, the largest Apple shareholders, and the leading Apple journalists in the business.
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