Apple TV+ revenue still ‘immaterial’ to Apple’s results

Apple TV+ is still fairly new to the world, and Apple said its new subscription streaming video service has yet to impact the company’s earnings. Apple executives didn’t offer much detail on Apple TV+, which launched on November 1, during Tuesday’s fiscal first-quarter earnings call. However, CFO Luca Maestri tempered early expectations for the service. He said right now Apple is tracking two components for Apple TV+ revenue: paid subscribers and Apple TV+ bundle subscribers, or people who bought an eligible Apple device and redeemed a free year of Apple TV+ service. Maestri said Apple is deferring revenue for Apple TV+ bundle subscribers based on the value of the service that is being provided (about $60 for 12 months of Apple TV+), the number of customers that are eligible for the offer and the expected number of customers that will redeem the offer. The company is also making reductions for family sharing, for multiple device purchases and for geographic availability from its total eligible device sales.