Apple is reportedly reevaluating its strategy for Apple TV+ in light of its significant spending on original content, which has reached an astonishing $20 billion. This adjustment comes as executives, including Eddy Cue, discuss ways to manage budgets more effectively. Apple TV+ has gained a reputation for being among the biggest spenders in the industry, with substantial investments in high-profile projects. Notably, the company spent $250 million on the miniseries “Masters of Air,” released this year, which did not achieve the desired viewer engagement.
In addition to that, Apple has invested over $500 million in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these investments, Apple TV+ holds just 0.2% of television viewership in the United States, showing that it has a long way to go in competing with giants like Netflix. Apple has faced challenges in growing its subscriber base, but the streaming segment is not a primary focus for the tech giant’s overall business.
While Apple appears unconcerned about its current performance in streaming, signs indicate a more cautious approach moving forward. This includes hesitance in renewing shows for further seasons, as indicated by Bloomberg data. Notably, Apple TV+ is the last major streaming service that has not introduced an ad-supported tier, but changes may be on the horizon since the company recently brought on Joseph Cady, a former executive from NBCUniversal.
In summary, while Apple continues to invest heavily in original content, the company may soon shift gears to find a more sustainable strategy for its streaming service, potentially enhancing its competitiveness in the crowded market. This shift can signify an opportunity for Apple TV+ to refine its offerings and improve viewer engagement. The introduction of an ad-supported tier could also open new revenue streams, helping the platform carve out its niche in the industry.
Overall, this situation presents a chance for Apple TV+ to innovate and better connect with its audience, ultimately benefiting their content delivery strategy in the streaming sector.