Apple is reportedly reassessing its spending on original content for Apple TV+, having invested an astonishing $20 billion to date. The company’s executives, including Eddy Cue, have met with studio heads Zack Van Amburg and Jamie Erlicht to discuss ways to reduce budgets and alter the streamer’s perception as the industry’s largest spender.
Despite substantial investments, including $250 million for the miniseries “Masters of Air” and over $500 million in projects from acclaimed directors like Martin Scorsese and Ridley Scott, the platform has not achieved significant viewership success. Currently, Apple TV+ accounts for a mere 0.2% of television viewership in the U.S., struggling to compete with giants like Netflix, which receives more views within a single day than Apple does in an entire month. Furthermore, the service has faced challenges in growing its subscriber base.
While the situation does not appear to be an immediate concern for Apple, given that streaming is not central to its core business, it appears the era of unchecked financial expenditure may soon come to an end. The company has already begun signaling this shift by showing reluctance to renew certain series for third seasons. Additionally, Apple TV+ currently stands out as the only major streaming service without an advertising tier, a situation that may change following the hiring of Joseph Cady from NBCUniversal earlier this year.
This strategic pivot suggests that Apple is acknowledging the competitive landscape of streaming and is interested in refining its approach to content production. With this reassessment, there’s potential for Apple TV+ to realign its content offerings to better engage viewers, attract new subscribers, and cultivate a more sustainable business model in the dynamic streaming market.
Overall, the shift in strategy might position Apple TV+ for a more focused and potentially rewarding future as it aims to balance quality content with fiscal responsibility.