Apple has recognized that it is investing significantly in original content for its streaming service, Apple TV+, with expenditures reaching an astonishing $20 billion. According to reports, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht to find ways to control these lavish budgets.
The company’s strategy has been to create high-quality, original programming, but its spending has not translated into a substantial viewership. For example, the tech giant allocated $250 million for the miniseries “Masters of Air,” which failed to gain considerable attention. Additionally, more than $500 million has been spent on projects with renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive investment, Apple TV+ holds only 0.2% of the TV viewership in the U.S. market, with its monthly views being dwarfed by Netflix’s daily viewership. Subscriber growth has also been a challenge for the platform. However, Apple seems unfazed by the performance of its streaming service, as it is not a central focus of its overall business model.
Looking forward, it appears that Apple may be curbing its lavish spending, as indicated by its hesitance to renew shows for third seasons. Interestingly, Apple TV+ is currently the only major streaming service without an ad-supported tier, although that could change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.
In summary, while Apple has invested heavily in original content for Apple TV+, it faces significant challenges in gaining viewer traction and subscriber growth. The company appears poised to rethink its strategy moving forward.
This shift could ultimately lead to more targeted and engaging content that resonates better with audiences, reflecting a hopeful outlook for Apple TV+’s future. As the landscape of streaming continues to evolve, Apple’s adaptability may open up new avenues for success in the competitive streaming market.