Apple is reassessing its approach to content spending for Apple TV+, having reportedly invested an astounding $20 billion in original programming. This revelation comes amid discussions among Apple executives, including Eddy Cue, regarding the need to tighten budgets. The streaming service aims to move away from its perception as the biggest spender in the industry.
High-profile projects have not yielded the expected returns for Apple, such as the $250 million investment in the miniseries “Masters of Air,” which struggled to attract viewers upon its release. Notably, the company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Yet, despite these expenditures, Apple TV+ only accounts for a mere 0.2% of television viewership in the U.S., dwarfing in comparison to Netflix, which garners more views in just a single day.
While these difficulties with subscriber growth and viewership might seem troubling, Apple appears unconcerned, likely due to the secondary nature of streaming within its broader business strategy. Nevertheless, the trend of unrestricted spending may be coming to an end, as evidenced by Apple’s hesitation to renew series for third seasons.
In a strategic shift, Apple TV+ remains the last major streaming player without an ad-supported tier, a situation that might evolve following the hiring of Joseph Cady, an advertising executive from NBCUniversal earlier this year. This move could open new avenues for revenue and viewer engagement.
Overall, while Apple’s current streaming strategy faces challenges, there is potential for evolution and adaptation. As the company refines its approach to content expenditure and explores ad-supported options, it may fortify its position in the competitive streaming landscape. This willingness to adjust could pave the way for more sustainable growth and improved viewer experience in the future.