Apple appears to be reassessing its strategy for Apple TV+, following reports that the company has spent an astonishing $20 billion on original content, with mixed results. According to Bloomberg, executive Eddy Cue has been engaged in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about tightening budgets for new projects. The goal is to move away from being labeled as the industry’s largest spender, particularly after high-profile investments like the $250 million miniseries “Masters of Air” that failed to attract significant viewership.
The platform’s financial outlay isn’t just limited to individual shows; reports indicate that Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite its substantial investments, Apple TV+ commands only 0.2% of TV viewership in the U.S., struggling significantly compared to industry giants like Netflix.
While Apple TV+ does not represent a core aspect of Apple’s business model, the company’s current trajectory indicates that it may need to reassess its content spending and approach, particularly as it has shown hesitancy to renew shows for third seasons. Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier, a situation that could soon change with the recruitment of ad executive Joseph Cady from NBCUniversal earlier this year.
In summary, Apple’s critical examination of its streaming service might lead to more strategic decision-making and a potential shift towards cost-effective content. This could bode well for the company in the long run, fostering a more sustainable model that could eventually enhance its viewer base and overall success in the competitive streaming market.