Apple is reassessing its approach to content spending for Apple TV+, as reports indicate the company has invested an astounding $20 billion in original programming. With such massive expenditures, including $250 million for the miniseries “Masters of Air,” which did not achieve significant audience traction, Apple is now seeking to reduce its content budgets.
Eddy Cue, Apple’s executive, is reportedly in discussions with studio leaders Zack Van Amburg and Jamie Erlicht to address these financial strategies. They aim to overcome their image as the biggest spender in the industry. Despite lavish investments in high-profile films from renowned directors like Martin Scorsese and Ridley Scott, Apple TV+ holds only a minimal share of the U.S. TV viewership at 0.2%, significantly less than competitors like Netflix, which garners more views within just 24 hours.
While Apple does not prioritize streaming as its core business, signs suggest that a shift from unlimited spending is imminent. This shift is evidenced by their hesitance to renew shows for additional seasons. Furthermore, Apple TV+ is the last major streaming service without an advertising tier, a situation that may change following the hiring of NBCUniversal’s Joseph Cady as an advertising executive.
In summary, Apple TV+ is navigating its way through a challenging landscape of high spending and low viewership. The company’s reevaluation of its content strategy could lead to a more sustainable approach that balances quality and cost. This renewed focus may ultimately benefit Apple TV+ and enhance its offerings for subscribers, paving the way for a brighter future in the competitive streaming market.