Apple is reevaluating its approach to original content for Apple TV+ after investing an astonishing $20 billion on shows and movies that have struggled to capture audience attention. Recent reports from Bloomberg indicate that executive Eddy Cue is engaging with studio heads Zack Van Amburg and Jamie Erlicht to explore ways to curb excessive spending, as the company aims to shed its reputation as the industry’s largest spender in the region.
Despite significant financial commitments for high-profile projects—such as the $250 million miniseries “Masters of Air,” which saw lackluster viewing figures—Apple TV+ has only managed to capture a tiny slice of the U.S. TV viewership market, holding just 0.2%. This number pales in comparison to Netflix, which garners more views within a single day than Apple TV+ typically does in an entire month.
While these challenges exist, Apple does not appear overly concerned about the performance of its streaming service, as it is not central to their core business model. However, the trend of unrestrained spending looks poised to change. There have been indications that the company is hesitant to renew series for a third season, reflecting a more cautious strategy moving forward.
Furthermore, Apple TV+ remains the last significant streaming platform without an ad-supported tier, a situation likely to change following the hiring of advertising veteran Joseph Cady from NBCUniversal earlier this year. This potential shift could open new revenue avenues for Apple while appealing to a broader audience.
In summary, while Apple TV+ faces considerable challenges in gaining viewership, the company’s willingness to adapt its strategy and explore new revenue models indicates potential for future growth. By prioritizing content quality over quantity and considering advertising options, Apple could enhance its streaming service’s appeal and cement its place in the competitive digital landscape.