Apple is reevaluating its strategy for the Apple TV+ streaming service, following reports that the company has spent around $20 billion on original content over recent years. This substantial investment has drawn criticism, especially given that many of the shows and movies produced have not gained significant traction among viewers.
According to Bloomberg, Apple executive Eddy Cue has initiated discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, to consider scaling back production budgets and shifting away from the perception of being the industry’s largest spender. The company has invested heavily in high-profile projects, such as the $250 million spent on the miniseries “Masters of Air,” which failed to capture viewer interest, and over $500 million on films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive financial outlay, Apple TV+ has only secured a 0.2% share of TV viewership in the United States, struggling to grow its subscriber base in an increasingly competitive streaming landscape. This situation is reflected in the decision to approach renewals for some series more conservatively.
While the streaming service has yet to adopt an advertising tier – a feature implemented by most other major platforms – the recent hiring of ad executive Joseph Cady from NBCUniversal indicates potential future changes in this area.
Apple’s focus seems to remain on its core business outside of streaming, leading to a more cautious approach when it comes to spending on original content. However, the company’s willingness to reassess its strategies could ultimately lead to a more sustainable and viewer-engaged platform, which, if executed properly, may strengthen its position in the market.
This pivot may be a sign of Apple adapting to the realities of the streaming industry while focusing on quality over quantity, allowing for the possibility of innovative and viewer-friendly offerings in the future.