Apple is reassessing its massive spending on original content as it looks for a more sustainable approach for Apple TV+. Reports indicate that the company has invested an astounding $20 billion in shows and movies, many of which have received little recognition from audiences.
According to sources, Apple executive Eddy Cue has been in discussions with the studio leaders of Apple TV+, Zack Van Amburg and Jamie Erlicht, about the need to control budgets. They aim to change the industry perception of Apple as a heavy spender, especially in light of its recent acquisition spending, including $250 million for the miniseries “Masters of Air,” which did not perform as well as expected.
Despite this significant financial outlay, Apple TV+ captures a mere 0.2% of the television viewership in the US and struggles to compete with giants like Netflix, which garners more views in a single day than Apple does in an entire month. The company has faced challenges in attracting new subscribers, but this hasn’t pressured Apple, as streaming is not central to its overall business model.
However, it appears that the era of unrestricted spending is coming to an end. Apple has shown hesitance in renewing shows for additional seasons, indicating a shift in its strategy. Moreover, Apple TV+ remains unique as the last major streaming service without an advertising tier, a situation that may soon be addressed, especially following the hiring of an advertising executive from NBCUniversal earlier this year.
This pivot could lead to a more sustainable model for Apple TV+, potentially enhancing viewer engagement without relying solely on high costs. Balancing quality content with financial responsibility might just be the key to unlocking a brighter future for Apple TV+ in the competitive streaming landscape.
In summary, Apple is exploring a more measured approach to content creation for Apple TV+ after significant investments, signaling a potential shift in strategy toward more sustainable financial practices that could result in improved viewer engagement and overall platform growth.