Apple is reportedly aware that it has been overspending on original television shows and movies, many of which have gone unnoticed by audiences. Following an investment of approximately $20 billion in content for its streaming service, Apple TV+, the company is now exploring a new strategy to manage its budgets more effectively.
According to Bloomberg, Apple executive Eddy Cue has been holding discussions with studio heads Zack Van Amburg and Jamie Erlicht about curtailing spending. The two executives have indicated that there is an intention to move away from the perception that Apple is the largest spender in the entertainment industry.
Apple’s significant financial outlays include a staggering $250 million on the recently released miniseries “Masters of Air,” which did not generate much buzz. Additionally, the company has invested more than $500 million in films by acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large expenditures, Apple TV+ holds only 0.2% of the television viewership in the US, accumulating fewer views in a month than Netflix attracts in just one day. The streaming service has also faced challenges in growing its subscriber base.
Although the situation does not seem to be a pressing concern for Apple, as streaming does not constitute a major part of its business, it appears that the era of unlimited spending may be coming to an end. This shift is already reflected in the company’s reluctance to renew shows for third seasons.
Additionally, Apple TV+ remains the only major streaming platform without a subscription tier that includes advertisements. However, changes in this area may be imminent following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.