Apple has acknowledged that it is overspending on TV shows and movies that many viewers are unfamiliar with. The company is reportedly re-evaluating its approach to Apple TV+ after investing an astonishing $20 billion in original content, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets. They have indicated a desire for the streaming service to move away from its image as the industry’s biggest spender.
Among its significant expenditures, Apple shelled out $250 million for the miniseries “Masters of Air,” which debuted this year but failed to make a significant impact. Furthermore, the platform has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive investments, Apple TV+ holds only a 0.2% share of TV viewership in the U.S., attracting fewer views in a month compared to what Netflix secures in just 24 hours. Additionally, the service has struggled to grow its subscriber base.
However, Apple doesn’t seem particularly concerned about these challenges, given that streaming is not central to its business model. Still, the era of unrestricted spending may soon come to an end, as evidenced by its hesitance to renew shows for third seasons, as reported by Bloomberg.
Interestingly, Apple TV+ is the last major streaming platform without an advertising tier. This could change soon, following the recent hiring of Joseph Cady, a former NBCUniversal advertising executive.