Apple has acknowledged that it is investing excessively in television shows and movies that are often unknown to viewers. The company is now re-evaluating its approach to Apple TV+ after reportedly spending around $20 billion on original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to cut back on budgets. The studio chiefs are reportedly aiming to alter the perception that the streaming service is the industry’s largest spender.
The tech giant has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which premiered this year but garnered minimal attention. Furthermore, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its enormous expenditures, Apple TV+ holds only 0.2% of the U.S. TV viewership, attracting fewer views in a month than Netflix garners in just 24 hours. The platform has also faced difficulties in boosting its subscriber base.
Although Apple TV+ is not central to the company’s business model and its challenges do not appear to be a major concern for Apple, the era of unrestricted spending may be coming to an end. This shift is signaled by the company’s hesitation to renew several shows for their third seasons.
Notably, Apple TV+ is the only major streaming service that does not offer an ad-supported tier. However, this may soon change as the company recently hired Joseph Cady, a former advertising executive from NBCUniversal.