Apple TV Plus has a problem: it spends a ton of money on shows that no one watches. And by “a ton of money” I mean just that: a new Bloomberg According to a report, Apple spent over $20 billion to reach just 0.2% of the US streaming audience.
Despite Apple’s massive spending on movies and TV shows, more people watch Netflix in a single day than stream Apple TV Plus in an entire month. And that’s one of the big reasons Apple, according to Bloomberg’s sources, is preparing for a strategy shift to make its streaming platform more sustainable—and potentially less exciting.
To give just one example: the prestige drama Masters of the air cost over $250 million and was the only Apple TV Plus show to make the Nielsen charts (the primary source of U.S. TV ratings) this year. It still drew a smaller audience than Netflix’s House of NinjasAnd Apple’s cinematic adventures have also underperformed: the critically acclaimed Martin Scorsese film Murderers of the Flower Moon The film reportedly grossed $157 million worldwide, but cost $200 million to produce.
Apple’s disappointing ratings and box office results are a shame, because for viewers like me, Apple TV Plus is the new HBO.
It’s the only streaming service I’ve never canceled or even really complained about; chances are the next time I bend your ear to a brilliant new show, it’ll be an Apple TV Plus series. But you probably won’t watch it. And that means the golden age of Apple TV Plus could be coming to an end. The future of Apple TV Plus looks a lot like Netflix.
Why Apple TV Plus Was the New HBO
I think some of the best shows available on a streamer are Apple Originals. For me, the standouts are Parting And Slow horsesboth of which I’m currently rewatching with my equally besotted teenager, as well as the delightfully silly but utterly engrossing For all of humanitythe claustrophobic Silo and the surprisingly moving Shrink. And I loved the Colin Farrell show too Sugaralthough I suspect I was one of the few who saw it.
If I had to tell you about a brilliant new series, chances are it’s going to be one for Apple TV Plus.
What all these shows have in common is that they are very expensive. Apple has built a reputation for lavish budgets and big spending on talent.
That’s a combination that produces many familiar faces: Cate Blanchett in DisclaimerMeryl Street in ExtrapolationsTom Hanks in GreyhoundElizabeth Moss in Radiant girlsNicole Kidman in RoarHarrison Ford in ShrinkJennifer Aniston and Reese Witherspoon The morning showJake Gyllenhaal in Presumed innocent…you get the idea.
Apple has built a reputation as the deep-pocketed streamer, a place where creatives can make their dream projects with their dream casts. Which would be great if they also had dream ratings. But they don’t.
As I’ve noticed time and time again, when I tell people about a new Apple TV Plus show, they’ve never heard of it and haven’t even thought about subscribing to Apple TV Plus. And if I’m being completely honest, some of the shows I mentioned in the paragraph above… I’d never heard of them either. I can’t help but think that if Apple had spent a little less on talent and a little more on marketing, more people would be watching the shows.
Of course, the fact that series aren’t hits isn’t just a problem for Apple TV Plus. Netflix produces a lot of material every day that most of us will miss. But – and without taking Netflix short – much of that material is cheaply made or cheaply bought. And Apple TV Plus isn’t exactly cheap at the moment: according to the Financial Timesevery episode of Apple’s The morning show costs more to make than the action-packed final episodes of Game of Thrones.
What are the plans for Apple TV Plus now?
According to Bloomberg, Apple is now doing two things: It’s considering licensing more films from Hollywood to expand its catalog, and it’s being much more careful about what it greenlights and how much it spends on it.
I can’t help but think that if Apple had spent a little less on talent and a little more on marketing, more people would be watching its shows.
Bloomberg’s analysis found that Apple is canceling shows at a faster rate than before: In 2019, the average number of seasons per series was 3.67, but that’s now down to 2.0, and the percentage of shows that move on to a third season has fallen from 100% in 2019 to just 22% today. That suggests that Apple is operating much more like Netflix when it comes to greenlighting or not making consecutive seasons.
Even prestigious shows are struggling. Foundation has already been delayed to stay within budget and Apple has reportedly been pressuring producers to keep costs down; and future seasons of Parting are apparently far from certain, as Apple wants guarantees about how much it will cost.
Apple certainly isn’t short on cash, but the company still has to answer to investors. Spending so much money for so little return is unsustainable, even with Apple’s deep pockets.
It’s probably inevitable, then, that Apple TV Plus will become more like Netflix and its rivals – even if that means sacrificing show quality for the sake of viewer quantity. We’ve already seen signs of this, with the streamer adding classic films and licensing titles from the major studios.
It will still make for great shows, but maybe not as many. I should probably stop holding my breath for a second season of Sugar.