Apple is reassessing its approach to original content for Apple TV+, having reportedly spent an astonishing $20 billion on shows and movies, many of which have gone largely unnoticed by audiences. According to a Bloomberg report, Apple executive Eddy Cue has been involved in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets and improving the platform’s reputation as a major spender in the industry.
The company has invested significant resources in ambitious projects, including $250 million for the miniseries “Masters of Air,” which failed to generate substantial interest upon its release. Additionally, Apple has allocated over $500 million to films directed by acclaimed filmmakers like Martin Scorsese and Ridley Scott.
Despite this massive investment, Apple TV+ holds a mere 0.2% share of US TV viewership, lagging far behind competitors like Netflix, which can attract more viewers in a single day than Apple TV+ does in an entire month. Furthermore, the platform has struggled to attract a larger subscriber base.
While Apple’s streaming service challenges might not pose an immediate concern for the tech giant—given that streaming is not central to its overall business strategy—the company appears to be curtailing its extravagant spending. This is reflected in its hesitation to renew shows for third seasons, as indicated by industry data.
Interestingly, Apple TV+ remains the last major streaming service without a paid ad tier. However, this may change as the company recently brought on Joseph Cady, a veteran from NBCUniversal’s advertising division, suggesting a shift towards monetizing content through advertising.
In summary, Apple is shifting its strategy to ensure better alignment of content spending and audience engagement. By potentially introducing an ad-supported tier, they may tap into new revenue streams while striving to refine the quality of the content. This strategy may ultimately lead to a more focused approach that enhances the viewership experience and helps Apple TV+ stand out in a crowded market.