Apple is reassessing its approach to content spending on its streaming service, Apple TV+, amid concerns about the return on investment for its substantial expenditures. According to reports, Apple has invested an astounding $20 billion into original content, but its viewership remains minimal, accounting for just 0.2% of the television audience in the United States.
Executives, including Eddy Cue, have been in discussions with Apple TV+’s studio leaders, Zack Van Amburg and Jamie Erlicht, about the need to manage budgets more effectively. This shift comes in response to the platform gaining a reputation as the industry’s largest spender, yet it has struggled to attract a broader audience. For instance, Apple spent $250 million on the miniseries “Masters of Air,” which premiered this year but did not gain significant traction.
Additionally, over $500 million has been poured into projects featuring renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn, yet these efforts have not translated into a substantial increase in subscribers or viewership. In fact, Apple TV+ attained fewer views in an entire month than Netflix does within just 24 hours.
While Apple’s primary business does not rely on streaming services, indications suggest that the era of unlimited budgets may soon be coming to an end. This is evidenced by the company’s hesitance to renew certain shows for additional seasons, signaling a need for greater fiscal responsibility.
Interestingly, Apple TV+ remains the only major streaming service without an advertising tier, a status that could soon change. The recent hiring of Joseph Cady, a former ad executive from NBCUniversal, points towards potential new monetization strategies.
In summation, while Apple has made considerable financial investments in its content, the company appears poised to refine its strategy to focus on sustainability and audience engagement moving forward. This reassessment holds the potential for Apple TV+ to evolve into a more competitive streaming service, perhaps paving the way for innovative content that resonates more with audiences.