Apple Reportedly Decides to Ditch Low-Cost TV Dongle, Instead, Will Double Down on Original Content Production

In short: Apple has reportedly decided not to develop a low-cost alternative to its Apple TV media player due to concerns that such a device could tarnish its reputation as a premium device maker. Instead, the Cupertino-based company will double the amount of original content for its streaming platform and invest more in marketing efforts.

Sources familiar with the case reported Information (paid, through MacRumors) that Apple has been interested in an inexpensive TV dongle for several years now. The project was reportedly initiated by a video and audio marketing manager named Tim Tverdal, who believed the cheaper device would open the door for more people to subscribe to Apple TV +.

Phil Schiller and Greg Joswiak, however, disagreed. They argued that getting into the business of making cheap, low-margin devices would only hurt Apple’s reputation as a premium manufacturer. Senior management won the battle, and Tverdal reportedly left Apple recently.

Instead, Apple decided to make the Apple TV + app available on other platforms and even made a deal with Roku to place a dedicated Apple TV + button on Roku remotes.

Looking ahead, Apple is also interested in increasing the release of original content by 2022.

Sources say Apple plans to release at least one new product a week next year, more than double its 2021 release schedule.

Apple has also poured more money into its content marketing budget this year; north of $ 500 million. Apple is believed to have spent much less on marketing its shows in 2020, but that’s still a far cry from the $ 1.1 billion that Netflix spent on marketing in the first half of 2021 alone.

Image Credit James Yarema

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