Apple is reevaluating its spending on original content for Apple TV+, having invested a staggering $20 billion on shows and movies that have, for the most part, gone unnoticed by the average viewer. Recent reports indicate that Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads, Zack Van Amburg and Jamie Erlicht, to potentially reduce production budgets and alter the platform’s trajectory.
Despite the heavy financial outlay, including high-profile expenditures like $250 million for the miniseries “Masters of Air,” which did not perform as well as anticipated, Apple’s streaming service commands a mere 0.2% of TV viewership in the United States. This is in stark contrast to competitors like Netflix, which garners more viewers in 24 hours than Apple TV+ attracts in an entire month. The service has also struggled to significantly boost its subscriber numbers.
Although these challenges do not seem to alarm Apple, given that streaming is not a core aspect of its overall business strategy, signs indicate that the era of unrestricted spending may be coming to an end. The company has shown reluctance in renewing several shows for a third season, a further hint that a more disciplined financial approach may be on the horizon.
Additionally, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that could soon change with the recent hiring of ad executive Joseph Cady from NBCUniversal. This potential shift may open new revenue streams for the service.
In a hope-inspiring note, this transition could lead Apple TV+ to become a more sustainable and strategically focused player in the competitive streaming landscape. By honing in on quality rather than quantity, it’s possible that Apple may find a profitable niche that resonates with audiences, paving the way for future success in the streaming sector.