Apple is taking a critical look at its extravagant spending on original content for its streaming service, Apple TV+, as recent reports reveal that the company has invested around $20 billion in this area. Despite its willingness to spend significantly, with high-profile projects like the $250 million miniseries “Masters of Air” and over $500 million for films by acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, the service has not achieved a substantial foothold in the market.
Currently, Apple TV+ accounts for a mere 0.2% of TV viewership in the United States, far overshadowed by competitors like Netflix, which can garner more views within just a day. As its subscriber base growth has been sluggish, Apple appears to be shifting its strategy and moving away from its previous approach of unlimited spending. Executives have been discussing budget cuts and are reportedly keen to shed the image of being the industry’s highest spender in the streaming landscape.
Furthermore, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation likely to change as the company appointed former NBCUniversal executive Joseph Cady to explore advertising opportunities. This move may open new revenue channels for the service.
In a positive light, Apple’s reassessment could lead to more strategic investments in content, focusing on quality over quantity, and potentially creating a more diverse and appealing catalog for subscribers. With its robust financial resources, the company can pivot to a more sustainable model that may attract new viewers while also retaining existing ones.
As these changes unfold, it will be interesting to see how Apple TV+ navigates the competitive streaming environment and if its strategy will ultimately pay off in terms of viewer engagement and subscription growth.