Apple is reassessing its approach to original content production for Apple TV+, having spent an astounding $20 billion on various shows and movies that have often gone unnoticed by viewers. According to reports, Apple executive Eddy Cue has been engaging with studio leaders Zack Van Amburg and Jamie Erlicht to discuss potential budget reductions. The intention is to shift the platform’s image away from being labeled as the biggest spender in the industry.
Despite high-profile investments, such as $250 million for the miniseries “Masters of Air” which received minimal attention, and over $500 million directed toward films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, Apple TV+ has experienced a lackluster performance in terms of viewer engagement. Currently, it holds just 0.2% of TV viewership in the United States, receiving significantly fewer viewing hours than competitors like Netflix, which garners more viewers within a single day than Apple TV+ does in an entire month.
While this underperformance has not heavily impacted Apple’s overall business strategy—since streaming is not a primary focus for the tech giant—the company appears to be preparing to scale back its indiscriminate spending. Indications of this shift include a reluctance to renew series for third seasons and the recent hiring of ad executive Joseph Cady, hinting at a potential introduction of an ad-supported tier to Apple TV+.
In a positive light, this shift in strategy could prove beneficial for Apple TV+. By focusing on quality over quantity, Apple may likely enhance its content strategy, ultimately leading to a more engaged audience and better alignment with market trends. Adopting an ad tier could also broaden their subscriber base, making Apple TV+ more competitive in the bustling streaming market.
In summary, Apple is reevaluating its costly content strategy for Apple TV+, aiming to improve engagement and sustainability. This presents a hopeful opportunity for the platform to recalibrate its offerings and capture a wider audience.