Apple (NASDAQ:AAPL) TV+ continues to pursue a content strategy that prioritizes select high-quality productions rather than a vast library of shows and films. This approach, led by Eddy Cue, Apple’s senior vice president of services, reflects the company’s overall philosophy of focusing on fewer but highly curated projects. The streaming platform has invested heavily in original content, with substantial sums allocated to high-profile productions. However, its limited catalog compared to competitors raises questions about its long-term viability in a rapidly evolving media landscape.
Apple TV+ has maintained this strategy since its launch, opting to release a smaller number of prestige series and films rather than adopting the volume-driven model of Netflix (NASDAQ:NFLX) or Disney+. Over time, this approach has generated both critical acclaim and challenges in subscriber growth. Earlier reports highlighted Apple’s willingness to spend billions on content while struggling to secure a larger share of the streaming market. Despite its emphasis on quality, Apple TV+ accounted for only a small percentage of television viewing in previous years, a trend that continues today.
Why is Apple TV+ betting on select content?
Eddy Cue reiterated Apple’s commitment to carefully chosen content during a discussion at SXSW, emphasizing that the company relies on each project to perform well.
“We’re betting everything on the shows that we’re doing,”
Cue stated, acknowledging that Apple’s limited portfolio means every release carries significant weight. He also pointed out that this philosophy aligns with Apple’s broader product strategy, which favors a controlled selection over mass production.
How does ‘Severance’ reflect Apple’s strategy?
Severance stands as one of Apple TV+’s most high-profile successes, with its second season reportedly costing around $20 million per episode. The show’s popularity contributed to a significant spike in Apple TV+ subscriptions, demonstrating the potential value of Apple’s selective approach. Director Ben Stiller acknowledged the parallels between the fictional company in Severance and Apple itself, emphasizing the platform as an ideal home for the series.
“Apple’s a huge corporation and Lumen’s a corporation,”
Stiller remarked, addressing the comparisons between the two.
Apple has given creators significant creative freedom, with Stiller noting that he has not received directives from the company regarding the show’s content. Cue, a fan of the series, admitted to watching episodes weekly despite having early access to the full season. His personal connection to the show extends to its characters, as he identified most with Irving, a character who undergoes a transformation from loyalty to rebellion within the company.
Despite its high-profile projects, Apple TV+ remains a niche player in the streaming industry. The platform’s reported $20 billion investment in content has not yet translated into a dominant market position. While critically acclaimed productions have drawn attention, Apple must navigate the challenge of sustaining subscriber interest without a vast library of content. As streaming competitors continue to expand their offerings, Apple TV+ relies on a strategy that demands every new release to resonate strongly with audiences.
Apple TV+’s selective approach contrasts with the expansive libraries of competitors like Netflix and Amazon Prime Video, which rely on volume to attract and retain subscribers. The success of series like Severance demonstrates that Apple’s focus on premium content can drive engagement, but it remains uncertain whether this model will ensure long-term growth. As the streaming industry evolves, Apple may need to reassess whether its strategy is sustainable in an increasingly competitive environment.
