Apple has acknowledged its excessive spending on original content for Apple TV+, which has reportedly reached $20 billion. According to Bloomberg, the tech giant’s executives are now considering a shift in strategy to better manage their budgets. Eddy Cue, an Apple executive, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about the need to curb costs and improve the platform’s reputation within the industry as one of the largest spenders.
Notable investments include $250 million for the miniseries “Masters of Air,” which has seen minimal audience engagement. Additionally, Apple has invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these massive expenditures, Apple TV+ captures only 0.2% of TV viewership in the U.S., struggling significantly to compete with industry giants like Netflix.
However, Apple’s lessening focus on streaming, considering it not central to its business model, indicates that while there may be changes ahead, the company doesn’t view the struggles of Apple TV+ as a pressing concern. Despite its challenges, there’s a potential for revitalization as the platform’s leadership reassesses their strategy and aims to enhance their content offerings and viewer engagement.
Anticipation is also building around the possibility of Apple TV+ introducing an ad-supported tier, especially following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year, which could open new revenue streams and broaden its audience base. Overall, Apple’s proactive approach to redefining its streaming strategy could lead to a more sustainable future for Apple TV+.
In summary, while Apple faces challenges in maximizing its streaming platform’s potential, the company’s willingness to adapt and explore new avenues may ultimately lead to a more balanced and successful content offering.