Apple appears to be reassessing its strategy for Apple TV+ amidst criticisms about its substantial spending on original content that many viewers remain unaware of. According to reports, the tech giant has invested around $20 billion in original programming, but the returns on this investment have been less than stellar, with the service capturing only 0.2% of television viewership in the United States.
Executives, including Eddy Cue, are reportedly engaging with studio heads Zack Van Amburg and Jamie Erlicht to curb production budgets. This shift aims to move away from Apple’s image as the industry’s leading spender on content. Notable projects, such as the miniseries “Masters of Air,” which cost $250 million, have interacted with a lukewarm reception, highlighting the disconnect between investment and audience engagement.
Despite spending over $500 million on films directed by renowned filmmakers like Martin Scorsese and Ridley Scott, Apple TV+ struggles to boost its subscriber base, managing fewer views in a month than Netflix achieves in just 24 hours. While streaming is not a primary focus for Apple, the trend of unrestrained spending may be coming to an end, especially as the company has been hesitant about renewing series for third seasons recently.
Moreover, Apple TV+ has remained the only major streaming service without an ad-supported tier, a situation that may soon change. The hire of an advertising executive from NBCUniversal signifies a potential pivot towards introducing ad-based revenue options for the platform.
This shift in strategy could put Apple TV+ on a more sustainable path, balancing viewer engagement with responsible financial practices. By focusing on quality content that resonates with audiences rather than sheer volume, Apple TV+ can improve its competitive stance in the streaming industry.
In summary, Apple’s stepping back from overwhelming spending could lead to a more effective approach for Apple TV+, fostering long-term success through a more strategic, audience-focused content creation strategy.