And more importantly, though it only launched in 2019, Apple TV+ has shaken up the field of streaming services in a big way. The company is pouring an incredible $5 billion (€4.62 billion) every year into content. But despite this huge investment, the platform is said to be losing as much as $1 billion (€923 million) annually. The strategy seems to be working, as Apple TV+ has been critically heralded, accumulating more than 2,500 award nominations, winning 538 across its original programming. But it still fails to get the mass appeal needed to truly become a Netflix killer.
Apple TV+ has released high-profile shows such as "Severance," "Ted Lasso," and "The Morning Show," which have received positive reviews. Marking its success, “Severance” has already been renewed for a third season and has recently reached cultural phenomenon status. The platform's limited subscriber base of 45 million pales in comparison to Netflix's 300 million subscribers, highlighting its struggle to gain a foothold in an increasingly competitive market.
High-Profile Content, Yet Limited Market Penetration
The strategy from the launch of Apple TV+ was to premiere content with big budgets and star power. Among its other high-profile film releases are “Napoleon” and “Killers of the Flower Moon.” In comparison, “Napoleon,” arguably one of the biggest worldwide successes, grossed $221.4 million (€204.6 million) on its approximate $200 million (€184.5 million) budget. “Killers of the Flower Moon” flopped at the box office, bringing in just $158.8 million (€146.7 million) globally on an estimated budget of $215 million (€198.6 million).
Even with all of these massively high-profile releases, Apple TV+ hasn’t been able to break through and make a massive impact on the streaming landscape. The platform has faced challenges in replicating the cultural significance and widespread popularity achieved by competitors like HBO with shows such as "The Sopranos," "Breaking Bad," and "Succession." This fight is due in part to Apple TV+’s social caché deficit and inherent challenges in building buzz around its shows.
Challenges in Creating Cultural Impact
Since it launched late last year, Apple TV+ has released a number of high profile programs to much fanfare. Yet they rapidly disappear from conversations shortly after their publication. The platform’s weekly release schedule barely allows time to build those memorable “water cooler moments.” HBO, in contrast, for decades has been brilliant at generating hype. Yet Apple TV+ has an uphill battle to hold ongoing, widespread public attention. This is symbolic of the wider challenge that exists when crafting deeply compelling content that breaks through.
Apple TV+ supports big name directors and produces high-risk, buzzy, premium productions. These initiatives have yet to make a tangible cultural difference. The platform’s failure to support a productive sense of community and engagement around its content continues to be a major challenge.
Striving for Growth Amidst Financial Losses
Even with these implied financial losses, Apple TV+ to this day continues to spend aggressively in the development and production of premium programming. The platform aims to build a diverse library of original programming that appeals to a broad audience base. Its current subscriber number is a reminder of how hard it is to build and keep an audience in an oversaturated market.
Apple TV+’s investment strategy is a clear indication of its desire to place itself at the forefront of the streaming industry. In order to accomplish that goal, you have quality content. You need to be really smart, really strategic about the way you market and engage your audience. The platform is at a serious crossroads. Their future success will depend upon determining how they can sufficiently distinguish themselves from the competition.
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