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Apple TV+ service will undergo its biggest test as free trials run out

Apple TV+ service will undergo its biggest test as free trials run out

June 29, 2021: -The training wheels are about to come off for Apple TV+, the streaming video service of the company.

Apple TV plus costs $4.99 each month. It’s also mixed with other Apple services such as Music and iCloud in packages known as Apple One, beginning at $14.95 per month. But a lot of subscribers aren’t paying.

Apple gave away a vast number of Apple TV plus of subscriptions to get the service off the ground. It began in September 2019; anyone who bought an Apple product such as an iPhone, iPad, Mac, Apple TV, or Apple Watch got one year of Apple TV for free. In the pandemic, Apple extended the offer twice for those whose trial periods would expire soon.

Most Apple TV subscribers are still on the promotional offer; that is, 62% of the present subscribers accessing Apple TV through a promotional package, according to survey data by Moffatt Nathanson published in the month of January. Apple has sold hundreds of millions of iPhones and other gadgets since 2019.

Now Apple will start to wean Apple TV subscribers off the free plan. 

On July 1, people who purchase the Apple products will be eligible for only three months of free Apple TV, not a year, and people who already cashed on trial will be unable to get it. In July, the first subscribers to activate the promotional offer will begin to be billed for the service after they have access to its shows automatically for almost 21 months for free.

This creates a massive test for Apple. Will the millions of users currently on a free trial end up signing up for the $5 per month service or an Apple bundle because they can’t go without Apple’s shows? Or will they cancel?

Apple reduced its reliance on free trials for Apple TV is a “critical point” for the service, said Parks Associates analyst Steve Cason, following the streaming industry.

“For newer or smaller services, partnerships and promotions are an invaluable customer acquisition tool,” Cason said.

 “A large percentage of folks follow through; they truly love the service and continue it. Or they forget they gave the service their credit card,” he added.

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