Apple is reassessing its spending habits on original content for its streaming service, Apple TV+. Reports indicate that the company has invested an astounding $20 billion on various TV shows and movies, but is now reconsidering this approach amid disappointing viewership figures.
Executive Eddy Cue is reportedly in discussions with studio leaders Zack Van Amburg and Jamie Erlicht to establish new budgetary limits. In these conversations, it has emerged that they are eager to move away from the perception of being the largest spender in the industry, especially after high-profile projects, like the $250 million miniseries “Masters of Air,” failed to make a significant impact upon release.
In an even broader context, Apple has spent upwards of $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Yet, despite these extensive investments, Apple TV+ currently only captures a minuscule 0.2% of TV viewership in the United States, lagging far behind competitors like Netflix.
While Apple doesn’t view TV streaming as a pivotal part of its business operations, the tech company seems poised to tighten its spending, as indicated by a reluctance to extend certain shows beyond their initial seasons. Additionally, Apple TV+ remains unique among major streaming services by not yet offering an ad-supported tier, although this may change following the hiring of advertising executive Joseph Cady from NBCUniversal.
This shift could potentially lead to a more sustainable and focused strategy for Apple TV+, especially if it can attract a larger audience through more targeted investments and new advertising opportunities. The evolving landscape of streaming presents an opportunity for Apple to revamp its approach, ensuring that future content aligns better with viewer preferences, thereby improving engagement and retaining subscribers.
In summary, as Apple reflects on its extravagant content spending and faces challenges in user engagement, it may adopt a more strategic approach moving forward, setting the stage for future success in the highly competitive streaming market.