Last week A.B. Bernstein analyst Toni Sacconaghi defended his cautious view on Apple after they reported their financials. He told CNBC that he still believed the stock had become overvalued. He maintains a market perform rating. He pointed out that analysts were surprised that Apple didn't meet or beat "expectations" on services and that was why the stock didn't rise sharper since reporting.

While Sacconaghi was quick to point out that Apple Services didn't meet expectations, even though Apple delivered +17% growth in services year-over-year, he pointed out today that Apple's push into TV is 'failing to resonate.' Again, this is an odd point to push considering that Apple's CEO stated during his opening statement last week that  "Apple TV+ is off to a rousing start."

In a new BNN Bloomberg report today,  they noted that "Analyst Toni Sacconaghi estimated that fewer than 10 million consumers had opted for their free 12-month trial of Apple TV+, citing an analysis of the company’s first-quarter results. This equates to 10% or fewer of eligible customers, he wrote, a take rate he called "surprisingly low." Apple hasn’t disclosed subscriber numbers for the TV+ service.

Sacconaghi speculated that Apple TV+ may be "failing to resonate with customers, perhaps due to its limited content offerings." Unlike other streaming services such as Netflix Inc. or Amazon Prime, which offer reruns to well-known content, Apple only offers original shows on its service, with 'The Morning Show' being the most high profile.

Meanwhile, Walt Disney’s Disney+ service has benefited from the company’s pool of well-known intellectual property, like 'Star Wars' and Marvel.

In December, an expert panel hosted by UBS said that Apple TV+ "needs a mega-hit original series to ultimately retain subscribers," adding that the company "may likely have to ultimately also acquire an asset with a big backlog of catalog content -- most of which will be very expensive at this point."

Last week a rumor surfaced that MGM was reportedly in talks with Apple and Netflix which would be in line with what the analysts are saying Apple needs. Whether Apple actually hammers out a deal for content or the company is unknown at this time. 

Sacconaghi added that investors should "closely monitor the adoption of TV+ going forward," as the take rate will "provide some indication of potential acceptance of the service, as well as Apple’s ability to successfully launch meaningful new revenue-generating services." For more on this, read the full BNN Bloomberg report here.

While there's a lot of content on the books for Apple TV+, no dates have been assigned to most as you can review here. To keep adults tuning in, more quality dramas are needed every month to keep fans engaged.