The problem with AppleTV is that the subscription just gives you access to Apple's original shows and nothing more. Netflix and Amazon give you their original shows in addition to a ton of other movies and tv shows that they've licensed, all of which change every 2-3 months. AppleTV is $5/month and Netflix is $9/month. I think if Apple wants to compete in this space, they're going to have to start licensing other content to include on AppleTV. Either that, or include other features, like an AppleNews+ subscription. Or perhaps they should just follow the Amazon Prime model and give you an AppleTV/AppleNews+ subscription for free if you're a paid subscriber to iCloud.
Apple does need to do something with AppleTV because it's current iteration feels half baked, like they're only half committed to it. They do this sort of thing often andtheir history is littered with things that they only sort of commit to: the Apple HomePod, the iPod Hifi, the iPhone battery case, the Quicktake cameras, Pippin, etc.