Apple appears to be reassessing its substantial expenditures on original content for its streaming service, Apple TV+. Reports indicate that the company has invested around $20 billion in TV shows and movies, yet many of these offerings remain relatively obscure to viewers.
To address this, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets for new projects. They aim to shed the perception of Apple as the industry’s largest spender amidst underwhelming viewer engagement—an issue underscored by the hefty $250 million spent on the miniseries “Masters of Air,” which failed to garner significant attention upon release.
Additionally, Apple has invested over $500 million on films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these efforts, Apple TV+ has managed only a minimal 0.2% share of TV viewership in the United States, garnering fewer views in a month than Netflix sees in just one day. Subscriber growth has also been disappointing, which has led to speculation about the stability of Apple TV+’s business model.
However, while Apple appears to be trimming the sails on its streaming ambitions, it is important to note that streaming is not central to Apple’s primary business strategy. As such, the company may not be overly concerned about its current subscription struggles. Nevertheless, the trend towards more prudent spending is evident, especially in light of the company’s hesitation to renew shows for additional seasons.
Interestingly, Apple TV+ stands out as the last major streaming service without an advertising tier. This may soon change, as evidenced by Apple’s recruitment of Joseph Cady, a former ad executive from NBCUniversal, indicating a potential shift in strategy that could open new revenue streams.
In summary, while Apple’s streaming service is navigating through a challenging landscape, it is taking strategic steps to adjust its spending while exploring innovative revenue models. The company’s commitment to refining its approach could lead to more engaging content and ultimately enhance the viewer experience on Apple TV+.