Apple has acknowledged its overspending on original content for its streaming service, Apple TV+, having allocated an astounding $20 billion to date, much of which has gone toward programs that may not have resonated with audiences.
According to a recent report by Bloomberg, Apple executives, including Eddy Cue, have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding the need to tighten budgets and move away from the perception of being the streaming industry’s largest spender.
Significant investments, such as the $250 million for the miniseries “Masters of Air,” yielded disappointing viewership results. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, yet the platform still holds a mere 0.2% share of U.S. TV viewership.
While Apple’s focus remains on its core business rather than streaming services, the company appears to be shifting its strategy. There are indications this change may involve limiting the renewal of existing shows and exploring the introduction of an ad-supported tier, especially following the hiring of advertising executive Joseph Cady from NBCUniversal.
These developments highlight a notable transition for Apple TV+, which may soon aim for a more sustainable and targeted approach to its content offerings, potentially enhancing viewer engagement and satisfaction.
Looking ahead, this reevaluation could pave the way for more focused and creative programming that resonates better with audiences, helping Apple TV+ to carve out its own niche in the competitive streaming landscape. Such a reset could ultimately lead to a stronger and more sustainable platform in the long run.