[alemanek]

Apple can afford to play the long game here though.

TV+ is nice value add on their bundled subscription package so may be driving more people to opt for that. I know it was a major factor in my decision and now I am playing Apple Arcade games and use Apple Music as my primary music service.

Operating TV+ as a halo or loss leader product to get people to try other services within the ecosystem could be a winning strategy for them. Also likely drives some hardware sales.

[whywhywhywhy]

In what world does Apple need a “loss leader” to “drive hardware sales”.

They have some of the highest sales for high value products in the world.

What the goal of this was obviously to scoop $10 more cream a month from a % of those huge sales numbers.

“Loss Leader” theory makes no sense next to Apples financial and sales reality.

[alemanek]

The hardware sales I was talking about is their streaming box which is in no way dominant but is really nice. Also we have pretty much reached peak iPhone or close to it. These subscription services help keep people in the ecosystem as it raises switching costs a bit.

The article is implying that TV+ is losing money. I don’t know that it is but my point is that for Apple it is likely still worth keeping and growing the service even if they are losing money on it at the moment.

[whywhywhywhy]

Apple TV doesn’t matter, I’m sure iPad watching dwarfs ATV many hundreds if not thousands of times over.

AppleTV exists to make existing mega fans happy the ecosystem extends to their TV not to sell things.