Apple is reassessing its strategy for Apple TV+, having invested approximately $20 billion in original content over recent years, much of which has gone unnoticed by audiences. According to reports, Apple executive Eddy Cue has been engaging in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing expenses related to content creation.
Apple’s ambitious spending includes significant amounts for high-profile projects, such as the $250 million miniseries “Masters of Air,” which underperformed upon release. Additionally, the company has allocated over $500 million for films directed by esteemed filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these expenditures, Apple TV+ holds a modest 0.2% share of the U.S. TV viewership market and struggles to keep pace in subscriber growth compared to competitors like Netflix.
While Apple TV+ is not a primary focus for Apple as a tech company, the current trend indicates a tightening of budgets within the streaming service. The company is showing signs of restraint, particularly with its hesitance to renew certain series for third seasons. Moreover, Apple TV+ remains unique as the only major streaming platform without an ad-supported tier, although this may soon change with the recent hiring of an advertising executive from NBCUniversal.
This ongoing evolution within Apple’s streaming strategy suggests a potential pivot to a more balanced approach in content spending. By focusing on quality rather than sheer volume and exploring advertising options, Apple could enhance its competitive edge in a crowded market. Overall, while challenges persist, the company’s willingness to adapt could pave the way for a more sustainable future for Apple TV+.