Apple TV+ Allocates $20 Billion for Original Programming, Faces Challenges in Gaining Viewers

Apple TV+ Allocates $20 Billion for Original Programming, Faces Challenges in Gaining Viewers

Apple TV+ Allocates $20 Billion for Original Programming, Faces Challenges in Gaining Viewers


# Apple TV+: Prestige Lacking the Audience

In the fierce arena of streaming services, Apple TV+ has established itself as a producer of high-caliber, critically lauded content. Nonetheless, despite its high standing and the vast sums Apple has invested in original programming, the platform finds it challenging to secure a substantial segment of the streaming viewership. This article explores the factors contributing to Apple TV+’s restricted audience, its marketing hurdles, and the tactics the company is considering to expand its reach.

## A Standing for Excellence

Launched in November 2019, Apple TV+ entered a saturated streaming landscape dominated by heavyweights like Netflix, Amazon Prime Video, and Disney+. From the beginning, Apple marketed its streaming service as a premium destination centered on original content. The company has invested over $20 billion to curate a collection of shows and films featuring top-tier talent in both acting and production roles.

Renowned series like *Ted Lasso*, *The Morning Show*, and *Severance* have received numerous awards and nominations, including several Emmy victories. For example, *Slow Horses*, a spy thriller featuring Gary Oldman, has been nominated for 10 Emmys. However, despite these accolades, many potential viewers are still unaware of these productions, and Apple TV+ has not made a notable impression in the larger streaming landscape.

## The Figures Reveal the Reality

Compared to its rivals, Apple TV+ has a comparatively limited subscriber base. While Apple keeps its subscriber figures private, estimates put the number at around 25 million subscribers. In comparison, Netflix has roughly 283 million subscribers, and Amazon Prime Video exceeds 200 million. Even smaller services like Peacock (28 million) and Paramount+ (72 million) outshine Apple TV+ in subscriber count.

Perhaps more revealing is the service’s share of overall screen time. Nielsen reports that in June 2024, Apple TV+ represented only 0.3% of total U.S. viewing time. To contextualize this, Apple TV+ garners less viewing in an entire month than Netflix does in just one day. This stark disparity underscores the challenge Apple faces in finding its footing in a fiercely competitive arena.

## A Limited Collection and Marketing Struggles

A significant factor contributing to Apple TV+’s restricted viewership is its relatively compact content library. By 2024, Apple TV+ offers approximately 259 shows and movies, a tiny fraction compared to Netflix’s extensive catalog of about 18,000 titles. While Apple emphasizes quality over quantity, the limited variety may deter potential subscribers accustomed to the diverse offerings from competitors.

Furthermore, Apple’s promotional efforts for Apple TV+ have been somewhat restrained. In October 2019, Apple allocated $14.9 million for advertisements for Apple TV+, in contrast to $28.6 million on iPhone promotions. Similarly, that month saw the company run 139 distinct digital ads for Apple TV+ compared to 245 for the iPhone. This imbalance in marketing expenditure indicates that Apple has not prioritized the promotion of its streaming service with the same fervor as its other products.

## Investigating New Approaches

Despite its difficulties, Apple is not remaining stagnant. The company is reportedly exploring new avenues to boost viewership and revenue from its original offerings. One strategy being considered is licensing its films to other platforms. As reported by Bloomberg, Apple is contemplating the idea of licensing its original movies to international TV networks and markets where consumers can rent or purchase them. However, there are currently no plans to license its original series.

Additionally, Apple has brought on Maria Ines Rodriguez, a former executive at Disney, Hulu, and NBCUniversal, to direct its licensing initiatives. Her job is to formulate a global strategy for increasing revenue from the original content on Apple TV+ beyond Apple platforms. This initiative suggests that Apple is aiming to broaden the reach of its content outside its traditional ecosystem, a shift from its earlier tactics.

## Adapting to Market Trends

Beyond licensing, Apple is implementing other customary industry strategies to enhance its streaming business. For instance, Apple TV+ is now included in various bundles, such as a Comcast streaming package and an Amazon Prime Video package. Bundling is a prevalent strategy in the streaming sector, as it helps to reduce subscription cancellations by providing multiple services at a reduced price.

Apple’s decision to offer Apple TV+ through Amazon Prime Video is particularly significant, representing a change in the company’s streaming strategy. Historically, Apple has aimed to position its TV app as a central hub for content, similar to Amazon’s Prime Video Channels. However, without support from major players like Netflix, Apple’s vision of a universal content hub has often been elusive. Partnering with Amazon could be a practical move to enhance Apple TV+’s visibility and subscriber numbers.

## The Road Ahead for Apple TV+

As the streaming industry at large contends with increasing production expenses, subscriber weariness, and escalating competition, Apple is also reassessing its entertainment strategy. The company is reportedly curtailing its content production efforts…