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Sixty-two percent of APPLE TV+ subscribers in the fourth quarter of 2020 were enrolled in totally free offers, but only thirty percent of those people planned to renew their membership at the standard $4.99/month rate (TOD SPANGLER/VARIOUS VARIETY).

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Sixty-two percent of APPLE TV+ subscribers in the fourth quarter of 2020 were enrolled in totally free offers, but only thirty percent of those people planned to renew their membership at the standard $4.99/month rate (TOD SPANGLER/VARIOUS VARIETY).

Apple has said it intends to bulk up revenue from services, including Apple TV Plus, which is just over a year old. However, according to a MoffettNathanson study, only 30% of Apple TV+ users who were on free offers in Q4 2020 said they intended to renew at the usual $4.99/month price.

With Apple TV Plus already having been around for a little over a year, the company has signaled its intention to increase its reliance on service-based revenue. However, recent studies show that the IT giant will be at a severe disadvantage in the “streaming wars” when compared to its competitors.

According to MoffettNathan’s Q4 2020 SVOD Tracker report, 62% of Apple TV Plus users in the fourth quarter claimed they were on the free promotional offer that Apple gave to buyers of its hardware devices. Concerning for Apple is the fact that 29% of respondents stated they would not renew their subscriptions when the promotional time ended, while only 30% said they would pay the standard $4.99/month (and the rest were unsure).

Only sixteen percent of Disney Plus subscribers use the Verizon deal to gain access to the service. About a quarter of HBO Max users claim to have gotten into the program thanks to promotions offered by AT&T, which make the service free for those with the company’s top cellular, television, and internet packages (and for the priciest packages, HBO Max is bundled in as a permanent perk).

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