Apple is reevaluating its approach to original content for Apple TV+, following significant expenditures that have totaled around $20 billion. Recent reports indicate that Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht to tighten budgets and move away from the perception of being the biggest spender in the industry.
The company has made noteworthy investments in various productions, including $250 million for the miniseries “Masters of Air,” which this year fell short of capturing significant audience attention. Additional spending includes over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these efforts, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, registering fewer views in an entire month than Netflix typically garners in just one day. Subscriber growth has also proven to be a challenge.
Interestingly, while Apple has been investing heavily in streaming, it is not a central aspect of its business model, which may explain the company’s calmness regarding these setbacks. Nevertheless, the era of limitless spending is likely drawing to a close, as evidenced by the reluctance to renew some shows for third seasons.
In a significant shift, Apple TV+ currently stands as the only major streaming platform without an ad-supported tier. This may soon change, particularly after hiring Joseph Cady, a former ad executive from NBCUniversal, suggesting a potential new direction for the service.
In summary, Apple is acknowledging its current spending strategies in content creation and may be preparing for a more sustainable approach as it navigates the competitive streaming landscape. This reconsideration opens up opportunities for innovation and strategic growth while potentially enhancing the overall quality of content for Apple TV+ subscribers. It reflects the company’s ability to adapt, ensuring a promising future for its streaming endeavors.