Apple Adds Dozens of Licensed Movies to Apple TV+, More Signs of Apple TV+ Momentum, Apple Video Revenue Drivers

Hello everyone. Happy Monday. It's already turning into a busy week for Apple. Today's update will be focused on several Apple TV+ developments and Apple’s broader video play.

Let’s jump right in.

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Apple Launches Apple Sports App, Apple Sports vs. Competing Apps, Apple Sports and The Big Picture

Hello everyone. It feels good to get back in the swing of things after a little time off. We will dedicate today’s update to discussing a new app that Apple just launched: Sports.

An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)

Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.

An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.

Apple Considering Supplier Shift for Vision Pro Displays, Vision Pro and China, Thursday Q&A

We kick things off with some news on the Vision Pro supply chain front. While things can certainly change between now and the Vision Pro launch next year, we are getting a better view of what appears to be a challenge manufacturing Vision Pro at scale: OLEDoS (OLED on Silicon) displays. The discussion then goes over Neil’s thoughts on Vision Pro manufacturing and assembly in China. We conclude with the latest installment of Thursday Q&A in which Neil answers the following questions from Above Avalon members:

  • What’s motivating Apple’s deal strategy with live sports?

  • Do you agree that it has become increasingly challenging to estimate installed base totals for key Apple product categories? Will Apple change its approach? Is the lack of disclosure related to antitrust issues?

  • Did Apple change its commentary regarding installed base figures in the last earnings call?

Apple Considering Supplier Shift for Vision Pro Displays

Here’s The Information:

“When Apple dealt with Chinese manufacturers in the past, it was to buy low-level components such as small metal parts, paper boxes and batteries. For advanced parts such as displays and chips, the iPhone maker turned to firms headquartered in the U.S., Japan, South Korea and Taiwan.

Times are changing.

Apple is currently testing advanced displays made by two Chinese suppliers for possible inclusion in future models of its Vision Pro mixed-reality headsets, said two people with direct knowledge of the matter. The two suppliers, BOE Technology and SeeYa Technology, are among a crop of Chinese companies that are making high-end technologies, spurred by government policies designed to reduce China’s reliance on foreign tech while also making its homegrown firms more competitive.”

The Information’s article suffers from what has unfortunately become a norm in the Apple news sphere: narrative-based writing. A piece of reporting is wrapped in an opinion-based narrative. In this case, the new reporting is BOE Technology and SeeYa Technology working with Apple on a possible future supplier arrangement with Vision Pro in mind. The story used to wrap the reporting in is that Apple is benefiting from Chinese policies put in place to hurt the U.S. It’s quite the stretch. We will talk more about China shortly.

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Additional Thoughts on Apple’s MLS Season Pass, Playing Devil’s Advocate With Warner Bros. Discovery (Daily Update)

In today’s update, Neil examines a few follow-ups to yesterday’s discussion. We begin with how success for Apple and its MLS Season Pass streaming service will be measured. The discussion then turns to Warner Bros. Discovery and the ongoing rumors that David Zaslav is ultimately trying to sell the company. Neil puts his devil’s advocate hat on to examine the argument for Warner Bros. Discovery M&A.

Hello everyone. There are a few follow-ups to yesterday’s discussion that are worth pursuing in today’s update. Let’s jump right in.

Additional Thoughts on Apple’s MLS Season Pass

What will success look like for Apple with MLS Season Pass, its upcoming paid streaming service for U.S. soccer?

Soccer in the U.S. is not the NBA or NFL. It’s certainly not English Premier League either. Those aren’t controversial statements. Based on viewership data, U.S. soccer has 500,000 to 600,000 regular fans. When considering other countries, we can add a little bit more to the total. The NFL sees multiple times (i.e. 10+) that number with the NBA and English Premier League at more like a few times over that range on a per game basis.

An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.

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Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.

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