Apple is reassessing its strategy for Apple TV+, acknowledging it may be overspending on content that does not resonate with viewers. This comes after an impressive investment of approximately $20 billion on original programming. Company executives, including Eddy Cue, have been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht about controlling budgets more effectively and shifting away from its reputation as the top spender in the industry.
Among its significant expenditures, Apple invested $250 million in the miniseries “Masters of Air,” which drew minimal attention upon release. Additionally, they have allocated over $500 million for high-profile films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these efforts, Apple TV+ captures a meager 0.2% of television viewership in the U.S., indicating a stark contrast to competitors like Netflix, which garners more views within just one day than Apple does in an entire month. The platform’s struggle to boost subscriber numbers is evident, and the company appears to be less concerned, as streaming services are not central to its overall business objectives.
However, it seems that the era of boundless spending may be drawing to a close, as evidenced by a cautious approach toward renewing shows for additional seasons. Apple TV+ is also notable for being the last major streaming platform without an ad-supported tier, a situation that may soon change following the hire of advertising executive Joseph Cady from NBCUniversal earlier this year.
In summary, while Apple’s ambitious investments in original content have not yielded the expected viewership, the company’s strategic pivot may create opportunities to refine its offerings and enhance viewer engagement moving forward. By focusing on quality over quantity and potentially introducing ad support, Apple TV+ could better align itself with the competitive streaming landscape. This approach could lead to a more sustainable model, benefiting both the platform and its audience in the long run.