Apple is reportedly reassessing its approach to original content on Apple TV+, following significant expenditures on shows and movies that many viewers may not recognize. The company is said to have invested an astonishing $20 billion into original programming, which has not translated into a substantial viewership presence in the competitive streaming landscape.
Recent discussions among Apple executives, including Eddy Cue, along with the heads of the Apple TV+ studio, Zack Van Amburg and Jamie Erlicht, indicate a shift in strategy. They are considering tighter budget controls to shed the perception of being the biggest spender in the industry. For instance, Apple invested $250 million on the miniseries “Masters of Air,” which garnered little attention upon its release. Additionally, the tech giant has poured over $500 million into films directed by prominent filmmakers like Martin Scorsese and Ridley Scott, yet has not achieved the expected viewer engagement.
Despite the staggering investment, Apple TV+ has captured a mere 0.2% of TV viewership in the US, drawing in fewer viewers in one month than competitors like Netflix can attract in just one day. Subscriber growth has also been a challenge for the streaming service.
While Apple’s parent company appears unfazed by these setbacks, as streaming services are not central to its main business model, it seems clear that the era of unchecked spending could be coming to a close. The company has already shown a reluctance to renew programs for third seasons, indicating a careful reconsideration of its content strategy.
Notably, Apple TV+ is the last major streaming competitor without an advertising tier, a situation that may change soon with the recent hiring of advertising executive Joseph Cady from NBCUniversal, suggesting a potential pivot towards monetizing the platform through ads.
In summary, Apple is introspectively examining its content spending strategy, focusing on improving viewer engagement and optimizing its budget within the highly competitive streaming market. As the landscape continues to evolve, Apple’s willingness to adapt and innovate could ultimately lead to a more sustainable and impactful presence in the streaming sector.
This strategic shift not only underscores the challenges faced by emerging streaming services but also presents an opportunity for Apple to refine its offerings and connect more effectively with audiences. By focusing on quality over quantity, Apple could potentially foster a more dedicated viewer base in the long run.