Apple is reassessing its substantial investments in original content for its streaming service, Apple TV+, following reports indicating a staggering expenditure of around $20 billion on shows and movies. Eddy Cue, an executive at Apple, has been engaging with studio leaders Zack Van Amburg and Jamie Erlicht to evaluate and potentially reduce production budgets, as the platform seeks to change its perception as the largest spender in the industry.
The tech giant has made significant financial commitments to various projects, including $250 million for the miniseries “Masters of Air,” which unfortunately did not gain much momentum upon release. In addition, over $500 million has been invested in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these efforts, Apple TV+ has only captured a mere 0.2% of television viewership in the United States, drawing fewer viewers in a month than Netflix does in just one day. The platform has also faced challenges in boosting its subscriber base.
Although Apple TV+ continues to grapple with these obstacles, the streaming service does not appear to be a primary focus for the tech conglomerate, allowing for some financial cushion despite the lackluster performance. However, the days of unrestricted spending may be coming to an end as evidenced by the company’s hesitance to renew shows for a third season.
On a potentially positive note, Apple TV+ stands out as the last major streaming platform without an ad-supported tier, a situation that could change in the near future with the recent hiring of Joseph Cady, a seasoned advertising executive from NBCUniversal. This shift may open new avenues for revenue and increase viewership, allowing Apple to better engage with its audience while diversifying its financial strategies.
In summary, while Apple TV+ faces challenges in terms of viewership and budget management, strategic changes and adaptations in their approach could lead to a more sustainable and profitable streaming service in the long run.