The Struggles of Apple TV Plus in the Streaming Industry

Apple, known for its extravagant spending on Hollywood projects, has recently faced challenges in the streaming industry. While the company has invested billions of dollars in its Apple TV Plus streaming service, it seems that this approach might not be sustainable in the long run. Senior vice president of services, Eddy Cue, has been pushing studio chiefs Zack Van Amburg and Jamie Erlicht to monitor project budgets more closely in an effort to make the streaming business more viable.

Apple’s strategy differs from that of larger streaming companies like Netflix. While Apple invests heavily in individual projects, Netflix focuses on a larger volume of content that appeals to a wider audience. Despite spending over $500 million on movies from renowned directors, Apple TV Plus is struggling to attract viewers compared to Netflix. Apple’s original projects, though recognized during award seasons, are not generating the same level of viewership as its competitors.

In response to its diminishing viewership figures, Apple has made significant changes in its approach. The company is now quicker to cancel original series projects and is licensing more content from competitors to diversify its offerings. Additionally, Apple has delayed production on some shows to stay within budget constraints. However, the lack of transparency regarding viewership figures makes it challenging to evaluate the success of Apple’s original programming.

Despite the challenges, Apple has been relatively slow in laying off staff compared to other competitors in the industry. The company’s revenue from selling hardware products like iPhones provides a buffer against the financial strain faced by its studios. However, the lack of visibility into the performance of Apple TV Plus raises questions about the sustainability of Apple’s current business model in the streaming industry.

Apple’s struggles in the streaming industry highlight the complexities of competing with established players like Netflix. As the company navigates the shifting landscape of streaming services, it will need to adapt its strategy to appeal to a broader audience and ensure the long-term success of Apple TV Plus.