Apple is recognizing that its spending on original TV shows and movies may be excessive, particularly for content that has not gained widespread attention.
According to a report from Bloomberg, the tech giant has invested around $20 billion in original programming for Apple TV+ and is now seeking a new strategy to manage its budgets more effectively. Executives, including Eddy Cue, have reportedly engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht to address this issue. Van Amburg and Erlicht have indicated that the platform aims to move away from its current image as the largest spender in the industry.
Apple has committed significant funds to projects, such as the $250 million miniseries “Masters of Air,” which was released this year but did not achieve expected popularity. The platform has also invested over $500 million in films featuring acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ captures only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in a single day. Additionally, the service has faced challenges in growing its subscriber base.
Although Apple TV+ has encountered difficulties, the company seems unfazed, as streaming is not a primary part of its business model. Nonetheless, the streaming service’s days of unrestricted spending may be coming to an end, with indications of this shift reflected in the company’s hesitance to renew shows for third seasons.
Interestingly, Apple TV+ is currently the last significant streaming service without an advertising tier. However, this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.