Apple is reevaluating its approach to Apple TV+ production costs in a bid to enhance its competitiveness in the streaming service market. Despite investing a hefty $20 billion USD (approximately $27.5 billion CAD) and offering acclaimed shows like “The Morning Show” and “Ted Lasso,” Apple TV+ is still striving to attract more subscribers compared to its rivals.
To streamline expenses, Apple’s studio chiefs Zack Van Amburg and Jamie Erlicht are contemplating cutting back on excessive spending while maintaining the quality of their original content. The tech giant has made substantial investments in blockbuster projects from renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, including the World War II miniseries “Masters of the Air.”
However, these significant investments have not translated into anticipated subscription numbers for Apple. Only Scorsese’s “Killers of the Flower Moon” managed to gain attention on Nielsen’s list of popular streaming titles, underscoring the challenges faced by Apple TV+ in building a substantial viewer base.
To address this issue, Apple plans to adopt a more strategic approach by reducing upfront spending on shows, prompting third-party studios to bear additional production costs when necessary. Moreover, Apple will diversify its content library by licensing programming from competitors and terminating underperforming shows swiftly.
While the company aims to be more discerning in selecting new projects moving forward, it remains committed to high-profile investments like “The Morning Show,” featuring A-list talent like Jennifer Aniston and Reese Witherspoon. This commitment is evident in the generous payouts exceeding $50 million USD (approximately $68 million CAD) for upcoming seasons.
Despite facing challenges since its launch in 2019, Apple TV+ continues to offer its service for $12.99 per month in Canada. As Apple strives to carve a niche in an industry dominated by giants like Netflix, it remains determined to refine its content strategy and enhance viewer engagement effectively.
