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Apple Just Explained Why It Rebranded Its Streaming Service. The Real Reason Is Even Better than I Expected

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I’m usually not a fan of companies rebranding themselves or their products unless there’s a compelling reason. And, there is almost never a compelling reason. Sure, inside the company, there are people who think there is a compelling reason, and agencies that bill by the hour will sell you on a number of reasons they assure you are compelling. But of the time its a waste of money, time, and brand equity.

I typically would argue that there are only three reasons compelling enough to go through the effort: your brand is associated with something negative, your brand is confusing, or you have significantly changed something about your product or company. Anything else just seems like vanity.

Then, Apple rebranded its streaming service this week by dropping the “+” and people lost their minds. That’s mostly because Apple now has three things that all have the same name, which would normally be very bad.

I wrote earlier this week that I actually think it’s really smart, and that it was sending a message. Then, Eddy Cue, who oversees Apple’s services businesses, was a guest on The Town podcast. When host Matt Belloni asked him why the company made the change, Cue’s answer was short enough to fit on a sticky note:

“We just decided.”

That’s not actually one of the three reasons I listed above, but it turns out Apple’s reason was better than I expected. It comes down to maybe the simplest reason of all: when everyone is already calling your product something, just use that.

Cue went on to explain that the “+” made sense when Apple first launched the service because the company used it for other paid offerings—iCloud+, News+, Fitness+. But over time, it became clear that almost no one said “Apple TV Plus.” They just said “Apple TV.”

So Apple stopped fighting what everyone was already doing and changed the name.

In a way, Cue was admitting that Apple overthought it the first time. He didn’t call it a mistake, but I think you can make the case that it was. The “+” never added anything. It didn’t make the service more premium or make people more likely to subscribe. If anything, it added confusion. Apple’s solution is smart because it didn’t try to invent another name—it just went with the one everyone was already using.

That’s the lesson here. Most companies try to defend bad branding decisions long after everyone else has moved on. They form committees and hire agencies to convince people that what they said before still makes sense. Apple didn’t do that. It just changed it.

If you make a mistake, fix it. Honestly, that’s the part I love most because this isn’t the kind of rebrand companies usually make. Apple didn’t change the name because people disliked it, or because the business changed. It changed it because customers had already decided what they were going to call it—and Apple finally caught up.

Cue also brushed aside the idea that the new name might cause confusion. Apple TV is now the name of the hardware, the app, and the service. Most companies would panic at that. Apple didn’t. The truth is, consumers already figured it out. You can watch Apple TV on your Apple TV using the Apple TV app. It’s absurd when you say it out loud, but everyone understands what it means.

Rebrands are usually about changing perception. This one is about aligning with reality. Apple looked at how the world already talked about its product and decided to meet people there

Maybe the real lesson is that sometimes the best branding strategy is to stop trying so hard. It’s not the kind of move most companies would make, but it’s the kind of move only Apple can pull off—because when you already own the name everyone’s using, you might as well use it too.

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

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Jason Aten

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