Apple has recognized that it is investing excessively in TV shows and movies that many viewers may not be familiar with. Following a staggering $20 billion expenditure on original content, the company is reportedly reassessing its approach to Apple TV+.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The executives have indicated a desire for the streaming service to distance itself from its reputation as the industry’s largest spender.
Apple has allocated significant funds to various projects, including $250 million for the miniseries “Masters of Air,” which failed to gain traction upon its release this year. Additionally, the company has invested over $500 million in films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds only a 0.2% share of TV viewership in the United States, attracting fewer views in a month than Netflix achieves in just one day. The platform has also faced challenges in growing its subscriber base.
While the issues facing Apple TV+ do not seem to concern the tech giant significantly, as streaming is not a primary focus of its business, the era of unfettered spending appears to be coming to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons, as per Bloomberg’s data.
Notably, Apple TV+ is the last major streaming service without an advertising tier. However, changes may be on the horizon following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.