U.S. markets closed
  • S&P Futures

    +8.00 (+0.19%)
  • Dow Futures

    +60.00 (+0.18%)
  • Nasdaq Futures

    +30.25 (+0.23%)
  • Russell 2000 Futures

    +3.80 (+0.20%)
  • Crude Oil

    -0.28 (-0.31%)
  • Gold

    -0.10 (-0.01%)
  • Silver

    +0.04 (+0.17%)

    -0.0002 (-0.02%)
  • 10-Yr Bond

    -0.0750 (-2.64%)
  • Vix

    +0.14 (+0.66%)

    -0.0003 (-0.03%)

    -0.1030 (-0.08%)

    +569.08 (+2.45%)
  • CMC Crypto 200

    +13.92 (+2.56%)
  • FTSE 100

    +42.63 (+0.57%)
  • Nikkei 225

    -117.70 (-0.42%)
  • Oops!
    Something went wrong.
    Please try again later.

Apple TV+ content earns 250 award wins, Q3 revenue growth slows to $19.6 billion

In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance entertainment reporter Allie Canal outlines Apple's success in streaming content amid slowing growth in its latest earnings report.

Video Transcript


SEANA SMITH: Record revenue from Apple pushing shares higher this afternoon. Just about 20 minutes to go in the trading day. Shares up just about 3 and 1/2%. Sales from its services division jumping 12% from a year ago. Apple TV+ gaining traction with top titles like "Severance" and "Blackbird."

Yahoo Finance's Alexandra Canal is here to break all of this down for us. And Allie, when we take a look at Apple TV+, yes, it's gaining the number of users quarter over quarter, but how does this stack up to some of the larger streamers out there?

ALEXANDRA CANAL: Seana, Apple TV+ showing some pretty strong momentum. Apple on the services side seems to be crushing it. So by all accounts, I thought, OK, Apple TV+ must be doing really well in the streaming wars. But an analyst that I spoke with this morning told me that they're still well behind some of those competitors.

There's a few reasons why, but let's start with the bull case for Apple TV+. What are they doing well right now? Because I think that top line expectation is pretty strong. They have 250 award wins, including a Best Picture win for "CODA." That's the first streaming giant to ever win that award. Two Major League sports partnerships, and let's not forget the platform has access to a lot of Apple resources. A lot of money at its disposal, very great at marketing.

But that's also part of the problem since the streaming service isn't really core to Apple's business. If we take a look at the bear case, they have a very limited amount of content. Apple focused on that high quality original content. They're not really interested in franchises. That's going to hurt them in the long run. There's also a lack of global reach of those emerging markets, increasingly important for streamers. And as I was mentioning, Apple TV+ just is immaterial to Apple's bottom line and valuation at this point.

Now, the services side of the business, I think, will be important down the line, especially as those hardware sales slow. But for right now, I think the biggest issue for Apple is focus.

DAVE BRIGGS: Allie Canal, thanks so much for that report.