Apple is reassessing its strategy regarding spending on original content for its streaming platform, Apple TV+, after investing a staggering $20 billion in shows and movies, many of which have gone unnoticed. According to reports, Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and move away from its reputation as the top spender in the industry.
Notably, Apple has invested significant amounts in high-profile projects, such as $250 million on the miniseries “Masters of Air,” which did not perform well in terms of viewership. Additionally, the company has allocated over $500 million for films by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite these hefty investments, Apple TV+ currently claims only 0.2% of TV viewership in the United States, attracting fewer viewers in a single month than Netflix gathers in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles appear not to be a major concern for the larger tech company—given that streaming is not its primary business—the era of unlimited spending may soon be coming to an end. Indications of this shift are evident in the company’s reluctance to renew shows for third seasons. Furthermore, Apple TV+ remains the only major streaming service without an advertisement-supported tier, a situation that is likely to change with the recent hiring of advertising executive Joseph Cady, who previously worked at NBCUniversal.
This strategic shift reflects a broader awareness within Apple about the evolving landscape of media consumption. By adopting a more financially disciplined approach toward content creation, Apple could potentially reorient its offerings to align better with audience preferences and improve its competitive stance in the streaming market.
In conclusion, while Apple faces challenges with Apple TV+, the company’s initiatives to recalibrate its spending could lead to a more sustainable and engaging streaming service, ultimately benefiting audiences by providing more quality programming tailored to their interests.