Apple’s new streaming service was “immaterial” to its latest revenue according to the company’s chief financial officer.
Apple reported a record $91.82 billion in revenue for the final three months of 2019, up 9 per cent compared to the same period in 2018. The company also reported a record $12.72 billion in services revenue, up 17 per cent year on year.
Apple TV Plus launched in over 100 countries on 1st November, slap bang in the reporting period.
On a call with analysts, Luca Maestri said Apple TV Plus revenue “was immaterial to our results” for the period.
Apple CEO Tim Cook added that Apple is primarily measuring the success of Apple TV Plus based on number of subscribers. However, Cook didn’t reveal how many subscribers the streamer has secured so far, instead telling analysts “Apple TV Plus is off to a rousing start.”
Cook added that “the product itself is about storytelling… we think if we do that well, there will be some number of [shows] that are critically acclaimed.” Apple TV Plus won its first major award at the Screen Actors Guild Awards when Jennifer Aniston picked up Best Female Actress in a Drama Series.
He also told analysts there are now plans for Apple to explore the advertising model. “We feel strongly what that customer wants is an ad-free product,” said Cook, echoing the sentiments expressed by Netflix CEO Reed Hastings last week.