Apple Inc. is reassessing its approach to content creation for Apple TV+, having invested a staggering $20 billion in original programming, much of which remains underappreciated and under-viewed. Reports indicate that the company, under the guidance of Apple executive Eddy Cue, is in discussions with studio heads Zack Van Amburg and Jamie Erlicht about implementing stricter budget controls for future productions.
Despite its lavish spending, including $250 million on the miniseries “Masters of Air” and over $500 million on films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, Apple TV+ is not reaping the expected rewards. With a mere 0.2% share of TV viewership in the U.S.—a fraction compared to Netflix, which garners more views in just a day—Apple is seeking to shed its image as the top spender in the streaming industry.
Interestingly, while Apple TV+ has faced challenges in boosting its subscriber base, Apple itself seems unfazed, as streaming is not central to its overall business model. However, signs suggest a shift is on the horizon, particularly regarding the fate of shows and potential ad placements. Notably, Apple TV+ remains the last major streaming service without an advertisement-supported tier. This could soon change, especially following the recruitment of Joseph Cady, an advertising executive from NBCUniversal.
In summary, Apple is re-evaluating its content strategy for Apple TV+ as it looks to create a more sustainable and viewer-friendly platform. This strategic pivot could lead to a healthier return on investment and ultimately deliver content that resonates with audiences, enhancing the overall quality of programming available.
Looking forward, Apple’s move to streamline spending while simultaneously exploring ad-support options may position Apple TV+ more competitively in the ever-evolving streaming landscape, benefiting both the company and its viewers in the long run.