Apple realizes it has been overspending on TV shows and movies that many viewers may not be familiar with.
According to Bloomberg, the company is reassessing its approach to Apple TV+ after investing an astonishing $20 billion in original content. Apple executive Eddy Cue has reportedly been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio heads are said to be communicating a desire to move away from the perception of being the biggest spender in the industry.
Apple has invested heavily in high-profile projects, including $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon its release this year. Additionally, the company has spent over $500 million on films from well-known directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
However, despite this substantial investment, Apple TV+ holds just 0.2% of TV viewership in the U.S., attracting fewer views in one month than Netflix receives in a single day. The service has also faced challenges in growing its subscriber base.
While Apple appears unconcerned about the streaming service’s struggles, as it is not a primary focus of its business, indications suggest that the era of limitless spending may soon come to an end. This shift is reflected in the company’s hesitance to renew shows for third seasons.
Apple TV+ remains the last major streaming service without an ad-supported tier, but this could change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.