Only 10% Of Eligible Apple Customers Have Signed Up For Apple TV+

Even a free one-year subscription to a streaming service can't entice customers to subscribe to Apple TV+. Apple's streaming platform was offered for free for one year to all Apple device owners upon its launch in November 2019, a deal that fewer than 10% of Apple customers have taken up. Looks like customers aren't biting on Apple TV+.

Bernstein Research analyst Toni Sacconaghi estimates that fewer than 10% of Apple device owners eligible for the company's one-year free offer have subscribed to Apple TV+, reports Deadline. Sacconaghi arrived at the figure "through a series of calculations based on the tech giant's fourth-quarter report and commentary from management." However, Apple stock maintains a "market perform," or neutral rating.

Here is the rest of Sacconaghi's findings, per Deadline:

In a note to clients, Sacconaghi said the low adoption of Apple TV+, even among those who can get it for free, could have three plausible explanations. Scenario 1: Apple hasn't succeeded in its promotion of the service, as it juggles it with marketing a range of other new services and devices. Scenario 2: Apple may be "conservatively estimating its 'take rate' or deliberately scaling its promotions of TV+ slowly to mitigate the negative accounting impact of its early ramp," the analyst wrote. Scenario 3: Apple TV+ is simply "failing to resonate with customers, perhaps due to its limited content offerings."

Apple's installed base is 1.5 billion devices. The company offered a free year of Apple TV+ for those who bought the newest editions of its devices between September 10 and November 1 of last year, with the offer expiring last Friday. Regular subscriptions are $5 a month.

This comes as no surprise to anyone keeping up with the ongoing streaming wars. Apple TV+ received a quiet launch in November with so little fanfare that many Apple device owners were unaware that the streaming platform was even available. It could hardly compete with the streaming behemoth Disney+, which launched in the same month and had at its disposal thousands of both original and classic titles. Meanwhile, Apple doesn't have the benefit of a library of licensed fare, unlike fellow newcomer services like Disney+, and the upcoming platforms from NBCUniversal and WarnerMedia. Apple TV+'s new shows like See, Dickinson, and For All Mankind received mixed to positive reviews, while only one of its shows, the star-studded Morning Glory, received any awards buzz.

Does this sound the death knell for Apple TV+? Probably not for now, as Apple remains one of the most lucrative companies in the world and can likely continue bankrolling its streaming platform for a little while longer. But it certainly doesn't paint a promising future for Apple TV+.