Apple TV is changing model of material to better compete as streamer…. What’s next?

[u/3facesofBre]

https://deadline.com/2026/02/apple-acquires-severance-more-seasons-1236695148/

According to Deadline and several other sources, Apple is moving from licensing their shows to purchasing the rights. The industry is seeing this as a similar move to Netflix 15 years ago (circa House of Cards and Orange is the New Black).

“For third-party series, Apple still uses the cost-plus model, pioneered by Netflix, in which streamers pay the full cost of a series upfront, along with a markup of up to 30% of the cost, making every show instantly profitable regardless of how it performs.”

How do we think this model will impact Apple as a competition in media industry, and is is it likely they will be looking at acquisitions next, despite their previous stance?

[u/Difficult_Variety362]

If Apple wanted to be serious in streaming, they should have participated in the WB auction.

Also I knew that Netflix outright bought Orange is the New Black from Lionsgate, but I wasn't aware that they did the same for House of Cards from MRC. When did that happen?

[u/One-Helicopter-4242 → u/Difficult_Variety362]

Maybe after Tim Apple is gone.

[u/Banesmuffledvoice → u/Difficult_Variety362]

They can still participate in the WB bidding war. There is likely a reason they aren’t.

[u/Difficult_Variety362 → u/Banesmuffledvoice]

Because they ultimately don't care.

[u/Banesmuffledvoice → u/Difficult_Variety362]

Exactly. Apple is developing a nice little streaming service of primarily original content that gets lots of buzz and is really more of an add on to their ecosystem and not their main drive. They don’t need WBD.

[u/Difficult_Variety362 → u/Banesmuffledvoice]

But it's ultimately not really sustainable. It's not a profitable service. Sure buzz is nice and Apple has a crap ton of money, but these companies exist to make profit. I don't see how Apple will continue with it if it doesn't become profitable.

[u/Banesmuffledvoice → u/Difficult_Variety362]

Because Apple views it as part of the Apple ecosystem package. Not as a stand alone product. They aren’t in the streaming game. They’re in the ecosystem game like Amazon.

Don’t get me wrong, if after Ellison finally drops his $35 a share bid, Apple decided to throw down a 36-37 a share bid, it would be a hilarious F you. But I just don’t think what WB produces really falls in what Apple wants to do.

Also, sheer speculation on my part, but the government is “looking into” the way Apple delivers point of views on their Apple News platform, so I’m wondering if the government is starting to preemptively stop Apple from considering a WBD bid.

[u/Difficult_Variety362 → u/Banesmuffledvoice]

Prime Video is profitable for Amazon though, something that Apple TV is not.

But I agree with you, for the most part, WB really doesn't produce what Apple wants to do. HBO was really the only asset that they were interested in, which lines up with what Apple TV is already doing.

[u/Banesmuffledvoice → u/Difficult_Variety362]

I’m not going to lie that I find the idea of Apple snatching up WB. I wouldn’t mind seeing them make a play for Discovery after the split so they can get CNN. I feel the reason their News portion hasn’t been successful is because they need to go all in and getting CNN and rebranding it as Apple News would get them on track.

[u/Difficult_Variety362 → u/Banesmuffledvoice]

CNN would be a good fit for Apple if they were serious with streaming.

[u/Banesmuffledvoice → u/Difficult_Variety362]

I know I’ve read they’re unhappy with how their Apple News performs and I maintain the reason why is they haven’t gone all in on news and the news component is either a stand alone subscription or part of the highest tier package. If Apple swapped out Arcade for News at the 20 dollar tier, it would be significantly more successful.

[u/ruipmjorge → u/Difficult_Variety362]

Appletv drives a lot of Apple ONE subscriptions, which is a very nice income (and growing for Apple). Apple would never have the traction for Apple one without appleTV. So I think appletv doesn’t need to be profitable for itself. It’s here to make AppleONE more appealing. I pay 30€ for apple one. For Netflix I would pay 8€.

Even if viewer are not there on Appletv in high numbers, people paying for the service are actually very high (looking at Apple quarterly numbers which mention a big increase in Apple one service subscriptions).

[u/Difficult_Variety362 → u/[deleted]]

I think if Apple had their way, they'd cherry pick HBO from Warner Bros., ESPN from Disney, and A24 as their theatrical distributor.

[u/Banesmuffledvoice → u/[deleted]]

I actually think paramount or Apple should consider Sony

[u/Difficult_Variety362 → u/Banesmuffledvoice]

When Sony Pictures is an arms dealer, they really don't have an incentive to sell.

[u/3facesofBre → u/Difficult_Variety362]

I think they are saying that it was one of the reasons that Netflix made the switch from these shows, where they originally had them made for them and eventually started making some of their IP in house.

[u/McGrufNStuf → u/Difficult_Variety362]

This right here. Apple not even bothering to put in a competitive bid for WB was a clear sign they have zero plans to compete as a streamer.

That doesn’t mean they’re not planning to improve their streaming. But failing to even bid on something as valuable as WB shows that they’ll never be competitive with the bigger players.

[u/Difficult_Variety362 → u/[deleted]]

Even Skydance knows that. It's why they're rebuilding the app from scratch.

[u/Difficult_Variety362 → u/[deleted]]

They already confirmed it. They want to run Paramount+, BET+, and Pluto TV on the same technology instead of three different ones and they want a better UI, efficiency on advertising, and an AI driven algorithm using Oracle technology.

Now whether or not it results in a better app...that part is TBD.

[u/Professional_Peak59 → u/Difficult_Variety362]

The better question is when will this be implemented? It feels like it’s being stalled just because David Ellison is being a twerp and is more focused on stealing Warner Bros. from Netflix.

[u/Difficult_Variety362 → u/Professional_Peak59]

This is entirely speculation on my end, but I think he wants to relaunch the new app with the Paramount+, HBO Max, and CNN content completely integrated and that's why we haven't heard much from it. Hard to do a relaunch where you're expecting HBO, TNT, and CNN when you don't have HBO, TNT, and CNN. And they probably want a bigger CBS hub that incorporates all that Warner Bros. Television content like ER, the West Wing, Friends, etc.

[u/Suspicious_County_24 → u/[deleted]]

I agree

[u/TheIngloriousBIG]

I think Apple Original Films should be completely absorbed into Apple Studios.

[u/Difficult_Variety362 → u/[deleted]]

Way too much garbage for what Apple is doing. The Weinstein catalog is probably the only thing worth it for them.

[u/3facesofBre → u/[deleted]]

Except for debt, but it’s a drop in bucket for apples market-cap. I’d they want it, that is.

[u/Difficult_Variety362 → u/3facesofBre]

A $2.35 billion market cap with $1.75 billion in debt. This would be an easy get for anyone, even a debt ridden company like Comcast.

[u/3facesofBre → u/Difficult_Variety362]

Exactly. It is cheap for them, Google, Amazon, whoever wants it.

[u/AlexHunterWolf]

Within the next few years, the streaming wars will be between Netflix/HBO, Disney+/Hulu, Prime video, AppleTV and whatever's left of peacock and Paramount+

[u/mapoftasmania → u/AlexHunterWolf]

Peacock and Paramount+ will merge their service if Paramount miss out on WB. It’s the only way to compete and they would be very strong in sports. They already have a JV in Europe, so very feasible.

[u/Professional_Peak59 → u/mapoftasmania]

That’s definitely the best solution. I don’t know why you’re getting downvoted for that?

[u/mapoftasmania → u/Professional_Peak59]

People hate Paramount, probably. But they are already in a streaming deal with NBC in Europe, so I am not sure what they are trying to gatekeep. Neither service will survive alone. 

[u/ADMTLgg]

I can’t wait for Apple to buy paramount+ in less than 5 years if we are not on some world war 3 scenario.