Apple’s new services are yet to make any “meaningful revenue,” according to Bloomberg.
In a report based on Bernstein analysis, Apple’s new services – which launched last year to a mixed response from critics – is yet to make a real difference in the company’s revenue, and the firm’s shareholders are reportedly frustrated with Apple and want them to address it.
Despite multi-million dollar investments and advertising campaigns, Apple TV+, Apple News+ and Apple Arcade have struggled to make any meaningful impact or encourage users to sign up for extended periods.
Apple TV+, in particular, launched with just a handful of shows, and none has yet to make an impression in the same way as Netflix Originals.
Although Apple’s overall Services arm is reporting strong sales, thanks to the Apple Store, Apple Music, and the Google search deal, the more recent introductions aren’t helping.
Apple is expected to announce its latest results on July 30, and investors will be interested to find out what the company is planning to do to bolster revenues from new entertainment offerings. Apple TV+, in particular, is likely to be at the top of Apple’s hit list for a “rethink”.
Bloomberg reports that less than 15% of eligible customers signed up for a free trial to the Apple TV+ service, and the company has made little mention of the service at recent keynotes or investor updates.
Insiders say that the service needs a ‘strategic reevaluation’.
The news comes as Apple begins to make changes to its Arcade offering, removing some games and focusing more on titles that will keep users hooked.
Apple News+, too, has been flagging, and most recently its head stepped down. Last month, The New York Times withdrew from the service, and Apple has begun offering extended free trials for users.
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