10% of eligible Apple TV+ customers have used the free one year promo

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All users who purchased an Apple product from September were eligible to activate Apple TV+ For 12 months free of charge. However, few have taken advantage of this offer.

Bernstein analyst Toni Sacconaghi believes the Apple TV+ streaming service is close to 10 million subscribers. The problem is that it is a small percentage of all users who could have signed up for the service for free.

Although Apple did not provide any data on the number of devices sold in the fall and how many subscribers were enrolled in Apple TV+, Bernstein analyzed the company’s tax results to conclude that less than 10 percent of those who bought a new one Apple product in the last quarter, activated the 12-month free offer on Apple TV+.

Bernstein also notes that the cost of the Apple TV+ free offer was included in the company’s financial results. For this, after talking to Apple executives, the analyst calculated that the company included only $60 million for this cost. That equates to less than 10 million subscriptions, while the estimation indicates that Apple sold around 90 million devices during the quarter.

However, Bernstein’s calculations do not coincide with those of Ampere Analysis which, based on other information, calculated 33.6 million Apple TV+ subscribers. In any case, it would be only 36% of those who would be entitled to the 12 free months.

Regardless of the difference in numbers, the substance does not change: only a small percentage of those entitled have activated Apple’s free offer.

Furthermore, the analyst believes that Apple has not sufficiently promoted Apple TV+ on new devices. In practice, without inquiring about blogs and online sites, it was difficult for the average user to become aware of the offer.

The analyst says this was Apple’s precise choice: a slow launch to avoid driving up costs in the fiscal quarter, which with 90 million free activations would have been much greater, approximately $540 million. He adds that several users have not subscribed to the Apple TV+ subscription simply because they were not interested.

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