Apple is reassessing its financial commitments to original content on Apple TV+, acknowledging that it has overspent on productions that haven’t resonated with audiences. Reports suggest that the tech giant has invested around $20 billion on initiatives for the streaming service, but has seen limited returns, claiming just 0.2% of overall TV viewership in the U.S.
Senior Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing spending and changing the perception that Apple is the industry’s highest spender on content. Major expenses have included a significant $250 million for the miniseries “Masters of Air,” which debuted this year without much fanfare, and over $500 million on movies featuring renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the financial strain, Apple doesn’t seem overly concerned, as streaming is not a primary focus of their business model. However, the company’s inclination to limit spending is becoming apparent, with fewer renewals for third-season series. Additionally, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change with the hiring of ad executive Joseph Cady from NBCUniversal.
This shift in strategy may ultimately be beneficial for Apple TV+, as it could lead to more streamlined and focused content that appeals to viewers, potentially enhancing subscriber growth and engagement. As the company navigates this new approach, there is hope for a future where Apple TV+ finds its niche and establishes a loyal audience.
In summary, Apple seems poised to reevaluate its content strategy and spending habits on Apple TV+, signaling a potential pivot that could reshape its future in the streaming landscape.