Apple is reportedly aware that it has been overspending on original TV shows and movies, many of which remain largely unseen by the public. After investing a staggering $20 billion in content for Apple TV+, the company is considering a change in strategy.
According to reports from Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht regarding budget cuts. The studio chiefs have expressed a desire for the streaming service to move away from its image as the biggest spender in the industry.
Recent expenditures include $250 million for the miniseries “Masters of Air,” which premiered this year but failed to generate significant interest. Furthermore, Apple has reportedly spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these high costs, Apple TV+ has managed to capture only 0.2% of TV viewership in the United States, gaining fewer views in a month than Netflix achieves in just 24 hours. The service has also faced challenges in growing its subscriber base.
While the tech giant is not particularly concerned about these issues, given that streaming is not central to its business model, it appears that the era of unrestricted spending on the platform may be coming to an end. Evidence of this shift includes a hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that may soon change given the company’s recent hire of Joseph Cady, an advertising executive from NBCUniversal.