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Will Apple & Paramount+ Deal Hurt Netflix?

As the streaming competition continues to heat up, Apple and Paramount+ are considering a merger of their platforms to offer a discounted package to boost profitability and subscriber numbers claims insiders.

The report came from sources of The Wall Street Journal and suggests the bundling AppleTV+ and Paramount+ could entice subscribers as well as could strengthen their subscriber growth against competitors like Netflix and Disney+.

Because streamers offer monthly subscriptions, viewers can cancel at any time or, more specifically, when they have finished watching specific content, such as when U.S. AppleTV+’s subscriber number soared to about 60,0000 over interest in the World War II movie starring Tom Hanks in 2020.

The week after, AppleTV+ signups decreased to normal levels of around 10,000 daily.

As for the average “churn” rate, AppleTV+ and Paramount+ had over 7% of viewers cancel their subscriptions in October, which was over the entire streaming industry’s 5.1% churn average last month.

The member base for AppleTV+’s also declined when the platform’s prices were raised, but Apple indicated any and all price raises, the most recent in Australia from $9.99 to $12.99, was necessary to ensure they added higher-quality content to the platform.

Like AppleTV+ and other streaming services, Paramount raised their prices after their earnings were down to $9.99 from $8.99 for its standard plan.

More movement in the streaming wars, saw Netflix team up with Max earlier this month, which will have Netflix and Warner Bros will have to share revenue with Verizon.

To encourage more customers to choose its lower-priced tier with ads, Netflix may raise the cost of its premium tier without ads, which was introduced last year and could generate more revenue per user from the ads on the cheaper tier.

Previously, Netflix refrained from enlisting competitors but instead has cracked down on password-sharing beyond households, which CNN says aided Netflix in increasing its new subscribers to the highest level since Covid began by 1.75 million global streaming subscribers in the first quarter.

Another report revealed that Netflix may increase the cost of its ad-free options soon after a slow start for its ad plan strategy, with the standard plan costing $16.99 per month and the premium plan costing $22.99 per month in Australia.

As for the Apple & Paramount+ partnership, it has yet to be confirmed.

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