Apple is reevaluating its investment strategy for original programming on Apple TV+, reportedly after spending an astonishing $20 billion on content that hasn’t resonated broadly with audiences. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back on production budgets. The company seeks to shake off its image as the largest spender in the industry.
A notable example of this spending includes the $250 million investment in the miniseries “Masters of Air,” which debuted this year but garnered minimal audience engagement. In addition, funds exceeding $500 million have been allocated to projects from renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these efforts, Apple TV+ has only captured 0.2% of TV viewership in the U.S., falling significantly short of competitors like Netflix, which can garner that amount in just 24 hours. Subscriber growth has also been a challenge for the platform.
Despite these hurdles, Apple remains largely unfazed since streaming isn’t a primary focus of its business. However, changes are on the horizon as the company appears to be winding down its limitless spending, as evidenced by its hesitance to renew series for additional seasons. Furthermore, Apple TV+ is currently the only major streaming service without an ad-supported tier, a situation that could shift with the recent hiring of ad executive Joseph Cady from NBCUniversal.
As Apple navigates these changes, it may find innovative ways to enhance its content strategy while focusing on quality over quantity. With a clearer direction and potential new revenue streams through advertising, Apple TV+ could become a more competitive player in the streaming landscape.
Summary: Apple is reconsidering its approach to original content on Apple TV+, following a significant expenditure of $20 billion that hasn’t translated into substantial viewership. The company aims to reduce its spending and possibly introduce an ad tier, indicating a strategic shift that could strengthen its position in the competitive streaming market.