Apple is aware that it is overspending on TV shows and movies that many viewers may not recognize.
After investing around $20 billion in original content, the company is considering a revised strategy for Apple TV+, as reported by Bloomberg. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio chiefs have conveyed that the platform aims to reduce its image as the largest spender in the industry.
Significant financial commitments include $250 million for the miniseries “Masters of Air,” which saw minimal audience engagement. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this immense expenditure, Apple TV+ commands only 0.2% of TV viewership in the United States, accumulating fewer views in a month than Netflix achieves within just a day. The platform has also faced challenges in increasing its subscriber base.
Although Apple TV+ has encountered these issues, they do not appear to be a significant concern for the tech conglomerate, as streaming is not central to its business model. However, the era of unrestricted spending is likely coming to an end, hinted at by Apple’s hesitance to renew shows for additional seasons, according to Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an advertising tier. This may soon change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.