Apple is reassessing its content creation strategy for Apple TV+ following significant spending, reportedly around $20 billion on original programming. The company recognizes that it has invested heavily in shows and films, many of which remain largely unknown to audiences. Discussions have taken place between Apple executive Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets and shedding the image of being the industry’s biggest spender.
This fiscal reconsideration comes after substantial investments, including $250 million for the miniseries “Masters of Air,” which did not garner the expected attention. Furthermore, over $500 million has been allocated to films by renowned directors such as Martin Scorsese and Ridley Scott. However, despite these expenditures, Apple TV+ holds only 0.2% of total TV viewership in the U.S., attracting far fewer views per month compared to competitors like Netflix.
Apple’s streaming service is not central to its main business model, which may explain the company’s willingness to tolerate its current challenges. Nevertheless, signs indicate that the era of unrestricted spending may be waning, especially with fewer renewals for third seasons of existing shows. Additionally, Apple TV+ remains the only major streaming service without an ad-supported tier, but this could change as the company recently brought on Joseph Cady, a former NBCUniversal ad executive, to explore new revenue avenues.
This strategic pivot may pave the way for Apple TV+ to refine its offerings and enhance its appeal in an increasingly competitive streaming landscape. By focusing on quality over quantity, the service could potentially attract a broader audience while ensuring more sustainability in its production costs.
In summary, this shift not only reflects a pragmatic approach to managing content investments but also presents an opportunity for creative revitalization in Apple’s streaming strategy.