Apple TV+ struggles to compete despite $20 billion investment in original content

Apple TV+ faces stiff competition in streaming, despite critical acclaim and major investments in original content.

Apple TV+ has earned a reputation for high-quality original content, yet it lags in the competitive streaming market. Launched in 2019, Apple’s streaming service has spent over $20 billion to build a library featuring big names like Reese Witherspoon, Idris Elba, and Martin Scorsese. Despite this, Apple TV+ captured just 0.3% of U.S. screen viewing time in June 2024, according to Nielsen.

Compared to industry giants, Apple TV+ remains small. Subscriber estimates put it at 25 million, far below Netflix’s 283 million and Amazon Prime Video’s 200 million. Even smaller players like Peacock (28 million) and Paramount+ (72 million) surpass its numbers. Apple TV+'s limited content library, featuring approximately 259 titles versus Netflix’s 18,000, could be contributing to its struggles.

One key factor is Apple’s marketing strategy. While Apple has heavily promoted products like the iPhone, its advertising spend for Apple TV+ has been more modest. In October 2019, Apple spent $14.9 million on commercials for Apple TV+ compared to $28.6 million for the iPhone, per iSpot.TV. Digital ad efforts were similarly restrained, as reported by The New York Times.

To broaden its reach, Apple is exploring new strategies. Bloomberg reports Apple plans to license its original movies to third-party platforms like foreign TV channels and digital marketplaces. While original series remain exclusive, licensing films could increase revenue and visibility. Apple recently hired Maria Ines Rodriguez, a veteran of Disney and Hulu, to lead these efforts.

Additionally, Apple TV+ has embraced bundling, offering subscriptions through Comcast and Amazon Prime Video. These moves align with standard streaming industry practices, signaling a shift in Apple’s approach.

Despite the changes, Apple faces pressure to deliver results. With the streaming industry grappling with high costs and viewer demands, Apple may explore further adjustments, including potential ad-supported models. However, introducing ads or raising subscription prices risks alienating its existing audience, drawn by the platform’s ad-free experience and affordable pricing.

After five years and significant spending, Apple TV+ needs to expand its market share to sustain its presence in the crowded streaming landscape. While critical acclaim and awards have built prestige, Apple’s streaming service must secure more subscribers to achieve lasting success.