Apple is reassessing its strategy for Apple TV+ following extensive expenditures on original content that has not yielded significant viewership. Reports indicate that the company has invested around $20 billion in productions, but has only captured a mere 0.2% of the television viewership market in the United States.
Executives, including Eddy Cue and the studio heads Zack Van Amburg and Jamie Erlicht, are reportedly in discussions to tighten budgets and shift from being perceived as the industry’s largest spender on content. For instance, Apple invested a staggering $250 million for the miniseries “Masters of Air,” which did not garner much attention upon its release. Additionally, over $500 million has been allocated for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, yet the results have not met expectations.
Despite these challenges, Apple appears relatively unfazed, primarily because streaming services do not constitute the core of its business model. However, there are hints that the era of unlimited spending may be coming to an end, reflected in the company’s hesitation to renew certain shows for third seasons, as reported by Bloomberg.
In a possible shift to increase engagement and revenue, Apple TV+ remains the only major streaming service without an advertising tier. This may change soon, especially with the recent hiring of advertising executive Joseph Cady from NBCUniversal, signaling a potential pivot in their approach.
Overall, while Apple TV+ faces significant hurdles, its willingness to reassess spending and explore new strategies may lead to more effective content investments in the future. A more balanced approach towards content and advertising could create opportunities for growth and enhance its competitive stance in the streaming landscape.