Apple is reassessing its strategy for Apple TV+ after investing an astounding $20 billion on original content, according to reports. The tech giant is reportedly curbing excessive spending following discussions among its executives. Eddy Cue, an Apple executive, has been collaborating with Apple TV+ studio chiefs Zack Van Amburg and Jamie Erlicht to develop a more sustainable financial approach to content creation.
The company has made head-turning investments in projects, such as the miniseries “Masters of Air,” which cost $250 million but received minimal audience engagement. Reports indicate that over $500 million has also been allocated to films featuring renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these efforts and significant financial commitments, Apple TV+ currently captures only 0.2% of the television viewership market in the U.S., far less than its competitor, Netflix, which garners more views in a single day than Apple does in an entire month. Additionally, the streaming service has faced challenges in attracting new subscribers.
Though the streaming landscape has its difficulties, Apple appears unfazed since streaming is not its primary business focus. However, the company seems to be embracing a revised strategy, indicated by its hesitance to renew shows for additional seasons, aiming to shift toward more calculated spending.
Apple TV+ remains unique among major streaming services as it currently lacks an advertising tier. This may soon change with the recent hiring of Joseph Cady from NBCUniversal, hinting that Apple could be moving toward a more diversified revenue model.
In summary, while Apple TV+ has encountered significant hurdles in viewership and subscriber growth, the company’s willingness to pivot its strategy may lead to a more sustainable future. This transition could ultimately enhance the viewing experience and consumer perception of Apple TV+, positioning it better in an increasingly competitive market.
This shift might be a promising sign for the company, as it could potentially result in more diverse and engaging content that resonates with a larger audience.