What you need to know
- Marc Randolph, co-founder and former CEO of Netflix, has strong words for Apple TV+.
- Randolph said that Apple has "no excuse" for the current adoption of its streaming service.
In a recent interview with Yahoo Finance, Netflix co-founder and former CEO Marc Randolph said that Apple has "no excuse" for the current performance of Apple TV+, the company's streaming service.
The former CEO was answering questions about Netflix's competition, including Disney+ and Apple TV+, when he really laid into Apple, saying that the company is not in the game with the same dedication as its rivals. Randolph said that the company needs to take a metaphorical leap of faith to ensure the service's success.
"If Apple spent one quarter as much time on content as they do on giveaways they really could play...They have no excuse (and) they're still not in it with both feet. They really have to do the entrepreneurial thing and walk up to the edge of the cliff and jump."
Randolph also pointed to the services churn rate - the number of subscribers it loses in its effort to grow its customers. Right now, Apple TV+ has one of the highest churn rates around, something the former Netflix CEO says has to do with the content offering.
"Right now they have the highest churn rate. You can't keep replacing people, you've got to give them a reason to stay."
Apple has surely taken a much different approach to its streaming service than companies like Netflix. Whereas Netflix also offers original productions, the company also licenses a ton of other content to boost its library. Apple, however, is sticking to all original content, hoping that its own creations will become successful enough to allow the service to stand on its own.
