AppleInsider Staff
A union representing TV and movie workers says Apple pays discounted rates to production crews because it has comparatively fewer subscribers than competing streaming services.
A spokesman for the International Alliance of Theatrical Stage Employees told CNBC that Apple cited Apple TV+ subscriber numbers of less than 20 million people as of July 1. That statistic enables Apple to pay crews a lower rate than larger platforms like Netflix and Disney.
According to an existing contract, big-budget streaming productions can pay workers at a discounted rate if their combined U.S. and Canada subscriber numbers are under a threshold of 20 million people, the report said. A copy of the contract seen by CNBC reveals labor stipulations for streaming productions are less stringent than those maintained for traditional broadcast TV projects because profitability in the sector is "presently uncertain."
Apple does not appear to have provided IATSE with an exact subscriber number and the company has not publicly made that information available since Apple TV+ launched in late 2019. Estimates from Statista in May put worldwide figures at about 40 million at the end of 2020, with a majority of users taking advantage of Apple's free trial offer.
It was in July that Apple cut its trial period to three months, down from a full year gained through the purchase of an eligible device like iPhone. At the time, the 12-month offer had been on the table for some 20 months following multiple extensions.
Analysts rarely speculate on Apple TV+, but in June, J.P. Morgan said it expected the service to hit 100 million subscribers by 2025.
By comparison, Disney+, which launched at around the same time as Apple TV+, reached the 116 million subscriber mark in less than two years. Market leader Netflix boasts more than 200 million paying customers.
An Apple spokesperson declined to comment on subscriber statistics, but noted that it pays crew rates in line with major streaming companies, the report said.
IATSE is preparing to strike for better wages and working conditions. Ballots to authorize the action will go out to 150,000 members on Oct. 1, according to the report.
William Gallagher
Christine McKee
Chip Loder
Malcolm Owen
22 Comments
Can’t compare Disney+ against Apple TV+ because Disney started with a MASSIVE following with Marvel and Pixar fans, not to mention the TONS (read as thousands of hours) of content over the last 59 years. Apple started with ZERO content but is making an honest go at it, look at Ted Lasso and the recognition it has received. Netflix and Amazon are each spending more than $15+ Billion dollars per year on content, so it’s a competitive market place but where Apple has dropped the ball is on Apple TV device, it needs to be focusing on gaming, along with content.
The story is probably (roughly) correct , but nonetheless gives a false impression. I'm almost certain that the estimate above is for PAID subscribers only (which might also be a hint to how Apple One is doing), since that is the basis of what the union rate is for Apple.
So it shouldn't give anyone the impression that there are only 20M people watching Apple TV+, but as a service with almost 100 percent original shows, TV+ is undeniably a harder "sell" than other streamings that have big catalogs of "comfort food" old or at least familiar TV titles. It's never EVER going to beat Disney+, Netflix, Prime Video, HBO Max, or Hulu. It's also not trying to beat them.
I’m surprised the Apple One bundles haven’t boosted the numbers more. The subscriber count will go up now that T-Mobile is giving Apple TV+ with certain cell plans.
Ted Lasso was better on season 1. Let’s see how morning show goes.
It could be accurate since we don’t know how Apple or the unions count the subscriber numbers and if they do or do not count the free trials or the subsidized subscriptions paid by the carriers.