Apple is reportedly reassessing its strategy for Apple TV+, following significant expenditures on original content that have yet to yield substantial viewer engagement. The company has invested around $20 billion in various shows and movies over the past few years, including high-profile projects like the $250 million miniseries “Masters of Air,” which did not gain much attention upon its release.
According to Bloomberg, Apple executives, including Eddy Cue, have been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about streamlining budgets and changing the perception that the platform is the biggest spender in the industry. Notably, Apple TV+ accounts for only 0.2% of the TV viewership in the United States, showcasing the challenge in attracting a larger audience, especially compared to competitors like Netflix.
Despite this, Apple remains unconcerned about the streaming service, as it is not a primary focus of the company’s operations. However, current spending practices may evolve, as indicated by the hesitance to renew series for a third season.
Moreover, Apple TV+ is the last major streaming service yet to introduce an ad-supported tier, a change that is anticipated following the recent hiring of an advertising executive from NBCUniversal.
This strategic shift may provide Apple with an opportunity to better align its content budget with viewer engagement, potentially fostering a more sustainable approach in the competitive streaming landscape. As the company reassesses its priorities, it could focus on quality over quantity, providing more impactful content that resonates with audiences.
In summary, as Apple navigates its challenges in the streaming arena, it appears to be taking steps toward a more balanced and effective strategy that could ultimately benefit both the company and its viewers in the long run.