Apple is reassessing its strategy in the streaming market after investing a staggering $20 billion in original content for its platform, Apple TV+. The company is reportedly seeking to control its spending and improve its content offerings, following concerns raised by executives about the effectiveness of their current strategy.
Apple executive Eddy Cue has been engaged in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about adjusting budgets to reduce the platform’s reputation as the industry’s biggest spender. Despite significant investments, such as $250 million for the miniseries “Masters of Air” and over $500 million for films from renowned directors like Martin Scorsese and Ridley Scott, the platform has only captured a modest 0.2% of U.S. TV viewership. Its performance pales in comparison to competitors like Netflix, which can achieve in a single day the viewership Apple accumulates over the course of a month.
Despite its comparatively low viewership, Apple does not appear to be overly concerned, as streaming is not central to its overall business model. Nonetheless, the tech giant is signaling a shift away from its previously limitless spending habits, particularly evident in its hesitance to renew shows for third seasons.
Adding to this evolution, Apple TV+ remains the last major streaming service without an ad-supported tier, a situation that may change next year following the hiring of Joseph Cady, a former executive from NBCUniversal.
While these adjustments reflect Apple’s cautious approach in a fiercely competitive streaming landscape, they also signal hope for a more curated and focused content strategy that could better resonate with audiences. As streaming continues to evolve, Apple may leverage its strengths in technology and user experience to carve out a unique niche within the industry, ultimately benefiting its viewers and subscribers.
Summary: Apple is revisiting its approach to streaming, focusing on curbing excessive spending on original content, following a staggering $20 billion investment that has yielded low viewership for Apple TV+. The company is considering a more strategic content direction and may introduce an ad tier to enhance its offerings.