CEO Tim Cook Says Apple TV+ Isn't Designed to Boost iPhone Sales

[MacRumors]

Apple CEO Tim Cook today said that Apple TV+ is driven by a commitment to storytelling and artistic excellence, rather than an effort to boost iPhone sales.

In a new interview with Variety, Cook said that Apple's video streaming platform is designed to support original storytelling and cultural influence, distancing the initiative from any direct hardware-related sales strategy. The position is a notable clarification amid long-standing belief that Apple TV+ functions primarily as a marketing tool to strengthen brand loyalty and drive product purchases.

Apple TV+ debuted in November 2019. Apple deliberately chose to launch with only original titles and not to license a back catalog. Cook said:

We elected not to go out and procure a catalog. I know that's a faster way into the business, but it didn't feel like Apple at the end of the day. Apple should have something that we pour our passion into, and that's exactly what we're doing with the shows. And now you can see us hitting a stride. It feels wonderful.

Cook said that Apple TV+ is consistent with Apple's identity as a "toolmaker," a term originally used by co-founder Steve Jobs:

We're a toolmaker. We make tools for creative people to empower them to do things they couldn't do before. So we were doing lots of business with Hollywood well before we were in the TV business.

We studied it for years before we decided to do [Apple TV+]. I know there's a lot of different views out there about why we're into it. We're into it to tell great stories, and we want it to be a great business as well. That's why we're into it, just plain and simple.

The remarks come as Apple prepares to debut F1: The Movie, a $200 million racing film starring Brad Pitt, co-produced by Lewis Hamilton, and directed by Top Gun: Maverick's Joseph Kosinski. The film represents the largest production effort to date by Apple Original Films and will be distributed theatrically by Warner Bros. before arriving on Apple TV+.

To bring something to life that would be authentic to the sport, that would tell a great story as well about the ups and downs of life — F1 hit on all the things. And then we could bring some things that are uniquely Apple to the movie, like our camera technology. And we plan to have the whole of the company support it as well — our retail operation and everything. So it was something that we could get the entire company around. It feels wonderful to be a part of it.

Apple developed camera technology specifically for capturing high-speed racing sequences in F1, which is apparently now present on the latest iPhones.

I don't have it in my mind that I'm going to sell more iPhones because of it. I don't think about that at all. I think about it as a business. And just like we leverage the best of Apple across iPhones and across our services, we try to leverage the best of Apple TV+.

[...]

We really only do a few things. We only have a few products for the size of company we are. We pour all of ourselves in each one of those — and we do TV and movies the same way. It's about staying true to what Apple has always been. It's about staying true to innovation, staying true to our North Star. And if you're able to do that and entertain people in a great way, then we're doing pretty good.

I think the business of our being in this business will be good for us.

Cook added that 2025 is the first year the platform will release a full, weekly content slate, unaffected by the COVID-19 pandemic and industry strikes.

Article Link: CEO Tim Cook Says Apple TV+ Isn't Designed to Boost iPhone Sales

 

[Artemiz]

Of course. It's made to lose $1B at a time.

 

[DHagan4755]

If I were the CEO of Apple, the first thing on the chopping block would be Apple TV+.

 

[d5aqoëp]

Whatever Apple does, consciously or subconsciously, every line of code is to boost iPhone sales.

Also they still don’t allow DTS and ATMOS (HD audio) passthrough on Apple TV. Makes me believe that they must really hate us.

 

[jz0309]

so, this interview is to promote:

The remarks come as Apple prepares to debut F1: The Movie, a $200 million racing film starring Brad Pitt, co-produced by Lewis Hamilton, and directed by Top Gun: Maverick's Joseph Kosinski. The film represents the largest production effort to date by Apple Original Films and will be distributed theatrically by Warner Bros. before arriving on Apple TV+.

The position is a notable clarification amid long-standing belief that Apple TV+ functions primarily as a marketing tool to strengthen brand loyalty and drive product purchases.

really? I seem to have heard "content, story telling" more than once ...

 

[dumastudetto]

Given Apple TV+ is available on pretty much every rival platform, including Android, it shouldn't even be a question that needed answering.

 

[IceCool]

If it were, it would be exclusive. Or rather, there would be significant tangible benefits from using Apple TV+ on the iPhone… which there aren’t.

 

[jgba]

It's self-evident. No one buys an iPhone because of Apple TV+. The goal is to diversify the company's income, reducing dependence on hardware sales (cyclical and vulnerable to tariffs and geopolitical risk) and increase recurring subscription revenue.

 

[ttyRazor]

Maybe that’s part of the problem with today’s Apple. The iTunes Music Store existed to sell iPods, and it didn’t do anything to prioritize sales through there over CD rips or otherwise obtained music. What ver content Apple offered, it was a reason to get their products and get the most of them. Now that Services is such a source of growth, getting revenue from content is prioritized over making using that content the best it could be.

 

[danny842003]

Maybe that’s part of the problem with today’s Apple. The iTunes Music Store existed to sell iPods, and it didn’t do anything to prioritize sales through there over CD rips or otherwise obtained music. What ver content Apple offered, it was a reason to get their products and get the most of them. Now that Services is such a source of growth, getting revenue from content is prioritized over making using that content the best it could be.

The iPhone, iPad, Mac and Apple TV are all pretty mature devices.
What improvements would you like on your phone that’s going to improve the way you stream a show/movie?

 

[chaseqi]

If anything it's hurting the Apple experience, give me back the old tv app design that doesn't have an apple tv+ ad poster taking up 3/4 of my tv whenever i want to watch the shows i bought in itunes. (also does anyone else have the problem of apple tv app sometimes default opening the apple tv+ page)

 

[Dave-Z]

The position is a notable clarification amid long-standing belief that Apple TV+ functions primarily as a marketing tool to strengthen brand loyalty and drive product purchases.

Literally everything Apple does is to drive product purchases and increase friction for the user attempting to leave the brand.

The remarks come as Apple prepares to debut F1: The Movie

👆 Case in point.

 

[Homme]

Given Apple TV+ is available on pretty much every rival platform, including Android, it shouldn't even be a question that needed answering.

Exactly not to mention it’s one of the very few things from Apple which is permitted on Android.

 

[iHorseHead]

If I were the CEO of Apple, the first thing on the chopping block would be Apple TV+.

But luckily you're not and never will be.
But yeah, there's nothing to watch on Apple TV. I only saw one good movie and I forgot it's title.

 

[JohnC1959]

I don't seek Apple TV+ helping iPhone sales in any remotely direct way, but it does put the overall Apple brand out there and potentially in a good light. Most companies will likewise make part of their push enhancing the value of the overall brand rather than pushing specific products.

 

[Johnny907]

No, it’s meant to be under the table welfare for Hollywood.
Huge cast productions with massive budgets that draw in 1/4 the audience of even a middling Netflix “success?”
Sorry but what else could it be at this point?

 

[Baseiseough]

Whatever Apple does, consciously or subconsciously, every line of code is to boost iPhone sales.

Also they still don’t allow DTS and ATMOS (HD audio) passthrough on Apple TV. Makes me believe that they must really hate us.

I don't understand your comment. All the content on the Apple TV app (all Apple TV+ shows are in Atmos) and streamers is either Atmos at 48 KHz or LPCM 5.1 or 7.1 (at least on my AVR). The sound is pretty good with the Apple TV and we even have Dolby Vision. As for DTS, you can up mix LPCM with Neural:X or Dolby if you wish.

 

[Gloor]

I'm glad you are not. Apple TV+ is not perfect and it doesn't have too many things but there are some fantastic and very very high quality shows/movies.

Its in business for only few years. If Apple can maintain quality over quantity and work their way up then I think Apple TV+ will be very successful in the future.

I wish other shows had the same polish as some of the stuff on Apple TV+

If I were the CEO of Apple, the first thing on the chopping block would be Apple TV+.

 

[bondr006]

Apple TV+ is one of the streaming services I use most. Not on my phone, TV, or Mac, but on my family room TV. There are a bunch of great TV shows and movies my wife and I are watching, and have watched. One thing I have noticed is that every electronic device(phone, tablet, or pc) that people use is an Apple product. Don’t know if that counts as advertising but sure as heck see a lot of Apple products.☺️

 

[Baseiseough]

Apple TV+ is my favorite Apple service with Apple Music. Of course, all shows are not suited for my personal tastes, but all shows I watched are really well made, engaging and presented in Dolby atmos and Dolby Vision in 4K at no extra cost. It's a very good value. The bandwidth is also the best amongst all streamers I tried.

 

[iDento]

Apple TV+ being is amazing as it, they have to revamp the Computers app in Apple TVs because we did actually purchase movies from iTunes before Apple TV+ was a thing.

 

[iDento]

Apple TV+ is my favorite Apple service with Apple Music. Of course, all shows are not suited for my personal tastes, but all shows I watched are really well made, engaging and presented in Dolby atmos and Dolby Vision in 4K at no extra cost. It's a very good value. The bandwidth is also the best amongst all streamers I tried.

When it comes to services, Apple is amazing. Unless you're a gamer of course.

 

[AL2TEACH]

there's nothing to watch on Apple TV.

I have many shows to catch up on. I hope Apple will release the choke hold on their ratings censorship and lighten up. No need to replace Reader's Digest if they had a streamer. There's no need for Apple to fill up the video library with those rotating movies like other streamers.

 

[goborgh]

I like AppleTV+, but the problem is I already know who the bad guys are just by looking at the phones they're using.
Also, they need to stop advertising their products on their shows, it's getting annoying.

 

[turbineseaplane]

I have nothing against AppleTV+, but I do get a little tired of being told that I can't have an iPhone Mini because it "doesn't make enough money", when ATV+ loses 1B per year.

iPhone Mini's at least made money and kept a faction of the users happy and in the ecosystem!