Apple is taking a critical look at its spending on original content for Apple TV+, having reportedly spent around $20 billion, according to Bloomberg. Despite investing these considerable sums, including $250 million on the miniseries “Masters of Air,” which received minimal viewer engagement, Apple TV+ still holds only 0.2% of TV viewership in the United States.
In response to this situation, Eddy Cue, an executive at Apple, has been engaging with the service’s studio heads, Zack Van Amburg and Jamie Erlicht. They are reportedly working to reduce budgets and shift the perception of Apple TV+ away from being the biggest spender in the industry.
The platform’s struggles to attract subscribers and garner substantial viewership have not deeply concerned Apple, given that streaming isn’t the cornerstone of its business. However, the company’s approach to content spending is expected to evolve, as indicated by a slowdown in show renewals for new seasons.
Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier, which may change with the recent hiring of Joseph Cady, a former ad executive from NBCUniversal, suggesting potential shifts in its monetization strategy.
In summary, while Apple TV+ has faced challenges with its heavy investment in original content, the company is now open to exploring more sustainable practices that could ultimately enhance its value proposition and viewer engagement. This reevaluation shows a willingness to adapt and innovate, which could lead to a more refined and successful streaming experience for users in the future.