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Apple (AAPL) TV+ is Free for Subscribers But 9 in 10 Still Aren't Trying It - Bernstein

February 3, 2020 6:27 AM EST
Get Alerts AAPL Hot Sheet
Price: $168.49 -0.44%

Rating Summary:
    44 Buy, 19 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 37 | New: 8
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Bernstein analyst Toni Sacconaghi reiterated a Market Perform rating and $300.00 price target on Apple (NASDAQ: AAPL) after an analysis of the company's FY Q1 indicates that ~10% or less of eligible customers (under 10M) have opted to accept the 12-month free trial of Apple TV+.

The analyst stated "We see 3 plausible explanations for this surprisingly low take rate: (1) Apple hasn't been able to effectively promote TV+ - to which we would encourage the company to more directly leverage its 1.5B device installed base; (2) Apple may be conservatively estimating its “take rate” or deliberately scaling its promotions of TV+ slowly to mitigate the negative accounting impact of its early ramp; and / or (3) Apple TV+ is failing to resonate with customers, perhaps due to its limited content offerings, in contrast to the mega-launch of Disney+ (which comparatively achieved 10M subscribers in 1 day, despite offering a two week free trial vs. Apple's one year free trial)".

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $307.30 yesterday.



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Sanford C. Bernstein, Toni Sacconaghi