Apple TV+ faces challenges attracting viewers despite significant investment in original content. The company is revising its strategy, cutting budgets for future projects, while Netflix continues to lead the streaming market.
Streaming wars
Modest results for Apple TV+
Despite its enormous annual investment in producing original series, Apple TV+ has only a small share of the television viewing market in the United States - just 0.2%. This figure is especially significant when compared to other industry players.
Comparison with competitors
According to Bloomberg , for Apple TV+ generates fewer views per month than Netflix per day. At the same time, Netflix, although inferior to traditional cable television in the United States, remains the undisputed leader among streaming services. The platform boasts 277.7 million subscribers and reaches over 600 million viewers worldwide. Netflix's financial performance is also impressive: the service's profit grew by 44% from 2019 to 2023.
Apple's Cost Savings Strategy
In light of this data, Apple is taking steps to optimize spending on content production. The company is reviewing budgets for future projects, adapting scripts from popular shows like Severance and Foundation to create lower-cost episodes. However, some projects still require significant investment: for example, fees for the star cast of the fourth season of The Morning Show alone will exceed $50 million.
Critical acclaim vs audience popularity
Although Apple's projects have received many awards, their presence in popularity ratings remains limited. Over the past five years, only four of the company's series have made it into Nielsen's weekly top 10 most-watched original shows. However, in 2023, Ted Lasso became the most watched streaming series, which can be considered a significant success.
Filmmaking: High Stakes, Low Results
Last year, Apple invested nearly $500 million in films from big-name directors, like Martin Scorsese, Ridley Scott and Matthew Vaughn. However, most of these projects did not live up to expectations at the box office. The exception was the film “Killers of the Flower Moon,” which was included in the ranking of the most popular streaming releases according to Nielsen.
Discussion over measurement methodology
Apple representatives dispute Nielsen's data, saying it doesn't give the full picture. According to the company, Nielsen's methodology, limited to measuring views only in the United States and on certain devices, does not take into account a number of important indicators that are significant for assessing the success of streaming services.
Glossary
- Apple TV+ is a streaming service from Apple that offers original content.
- Netflix is the world's leading streaming service with an extensive library of films and TV series.
- Nielsen is an American company specializing in media audience measurement.
- Ted Lasso is a popular comedy series produced by Apple TV+.
- Martin Scorsese is a world-famous American film director, producer and screenwriter.
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Questions answered
What share of US TV viewing does Apple TV+ account for?
How does Netflix compare to other streaming services?
What steps is Apple taking to improve the performance of its streaming service?
How are Apple's original series performing in popularity ratings?
How does Apple measure Nielsen's data on the popularity of its content?
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Discussion of the topic – Apple TV+: Billions in investment, but only 0.2% of views in the US
Apple TV+ spends huge sums on original content but attracts only a small share of viewers compared to its competitors. In a month, the service collects fewer views than Netflix in a day.
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Olivia
Wow, I didn't think Apple TV+ had such low viewership numbers. 0.2% is just a drop in the bucket! 😮 I wonder why they can’t attract more viewers despite investing billions of dollars?
Klaus
I think it's because Apple doesn't have as deep a content catalog as Netflix. People are used to having a lot of choice, and Apple TV+ mostly only has original shows. Although their quality is excellent, the quantity is still let down. 🤔
Sophie
I agree with Klaus. Plus, Apple later entered the streaming market. Netflix has long been synonymous with watching TV series online. It takes time to change viewing habits. But I believe Apple has potential. Their shows are really high quality! 👍
Diego
But it seems to me that Apple is focusing on quality rather than quantity. Yes, they have fewer views, but what rewards! And Ted Lasso became a hit. Maybe their strategy is to slowly but surely win over the audience with quality content? 🏆
Victor
All this hype about streaming services is a waste of time and money. Why are so many series needed? Previously, people lived without it and were happy. And now everyone is sitting with their eyes glued to their screens. No live communication. Nonsense.
Olivia
Victor, don't be such a grump! 😄 Times change, and so does entertainment. Streaming gives you the opportunity to watch what you want, when you want. This is great! And no one has canceled live communication - you can discuss your favorite shows with friends.
Anastasia
It's interesting that Apple spends so much on a star-studded cast. 50 million for a season of The Morning Show - that's impressive! 🤑 Maybe they should invest more in advertising and promotion to attract more viewers?
Klaus
Anastasia, I agree. Advertising could help. But I think Apple should also expand its catalog. Maybe buy the rights to show popular old shows? This would attract more viewers, who could then become interested in original content. 📺