Apple TV+ is seeking to modify its spending strategy for its content, in light of low viewership numbers that confirm its position behind Netflix.
Despite facing its fair share of criticism, Apple TV+ has received a significant amount of attention for its success with popular series such as The Morning Show and Severance, which have been highly praised by audiences.
Despite its numerous accolades, the streaming platform’s viewership numbers are not as high as Netflix’s. According to Bloomberg, the platform only attracts 0.2% of TV viewing in the US in one month, while Netflix achieves the same number in just one day.
Due to these statistics, Eddy Cue, Apple’s services executive, convened a meeting with studio executives Zack Van Amburg and Jamie Erlicht in order to devise a strategy to curb excessive spending on their projects.
Despite Netflix remaining the primary purchaser of titles on the market, Apple TV+ surpasses them in spending on individual projects by a significant amount. As evidenced by their combined $500 million investment in films such as Killers of the Flower Moon, Napoleon, and Argylle, the service is willing to outspend its competitors.
According to reports, it is estimated that each episode of Severance Season 2 had a budget of $20 million, while The Morning Show’s cast alone cost a staggering $50 million.
In a July 2024 memo, Bloomberg Intelligence analysts Geetha Ranganathan and Kevin Near stated that the platform’s original content is only a fraction of what its competitors offer, resulting in weak subscriber growth.
According to comparisons with its competitors, Apple TV+ is perceived as the largest spender, as Disney, Paramount, and Warner Bros. have scaled back their expenditures in an effort to minimize losses. Netflix also reduced its spending, but remains the top performer in terms of profitability among streaming services.
Despite Apple TV+’s efforts to catch up to Netflix, it may be a lengthy process. Currently, the streaming service has 277.7 million subscribers and is utilized by over 600 million individuals worldwide.
Leave a Reply