Apple is reassessing its spending on original content for Apple TV+, following a significant investment of approximately $20 billion. Reports indicate that Eddy Cue, an executive at Apple, is working alongside studio heads Zack Van Amburg and Jamie Erlicht to reduce budgets and alter the company’s approach to original programming.
Despite investing substantial amounts, such as $250 million for the miniseries “Masters of Air,” which received limited attention, Apple’s streaming platform holds only 0.2% of the total TV viewership in the U.S. This low engagement is starkly highlighted by the fact that Apple TV+ accumulates fewer views in an entire month than what Netflix garners in just a day. Consequently, the platform has encountered challenges in growing its subscriber base.
Despite these difficulties, Apple seems relatively unconcerned about its streaming service’s performance, as it is not a fundamental aspect of the company’s overall business model. However, the era of unlimited financial commitment appears to be waning, with suggestions that the company is showing reluctance in renewing shows for a third season.
Interestingly, Apple TV+ remains the only major streaming service without an advertisement tier. This could change soon, as the company recently brought on board advertising executive Joseph Cady from NBCUniversal to explore potential shifts in its business model.
Summary: Apple is revisiting its approach to content spending for Apple TV+ after investing $20 billion, as low viewership and subscriber growth raise concerns. Major investments have not yielded expected benefits, prompting the company to consider budget reductions and new advertising strategies.
In a hopeful outlook, Apple’s potential pivot towards ad-supported streaming could open up new revenue streams and attract a wider audience, thus enhancing its market position in the competitive streaming landscape.