Apple is reassessing its substantial expenditures on original programming for Apple TV+, reportedly spending around $20 billion on content that has not garnered significant viewership. Recent conversations within the company suggest a shift in strategy as executives explore ways to rein in their spending on shows and movies.
According to Bloomberg, Eddy Cue, a key executive at Apple, has met with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to discuss scaling back budgets. The platform aims to shed its image as the industry’s largest spender on content, a reputation that has come under scrutiny as shows like “Masters of Air,” which cost $250 million, failed to make a substantial impact upon release.
Despite heavy financial investments in high-profile projects, including over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, Apple TV+ holds just a 0.2% share of TV viewership in the United States. This figure highlights the platform’s struggle to attract an audience compared to competitors like Netflix, which sees in a single day more views than Apple TV+ receives in an entire month.
Although the slow growth of Apple TV+ does not seem to be an immediate concern for the tech giant—primarily because streaming content is not its core business—Apple’s strategy appears to be shifting. There are indications that the company may be less inclined to renew shows after two seasons, reflecting a more cautious approach in its financial commitments.
Additionally, Apple TV+ is currently the only major streaming service without an ad-supported tier. However, a new hire from NBCUniversal suggests that this could soon change, indicating a potential pivot towards incorporating advertisements in the near future.
In summary, Apple’s reevaluation of its spending on Apple TV+ signals a possible transformation within its content strategy. This move could ultimately lead to a more sustainable model that balances investment with viewership goals, potentially conferring long-term benefits as the company adapts to the competitive streaming landscape. The future remains optimistic for Apple TV+, as it seeks to refine its approach and engage viewers more effectively while maintaining its innovative edge.