Apple is realizing that its spending on original content for Apple TV+ may be excessive, focusing on shows and movies that many viewers are unfamiliar with. According to Bloomberg, the company has invested around $20 billion in original programming and is reconsidering its strategy. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets.
The platform has made significant financial commitments, such as spending $250 million on the miniseries “Masters of Air,” which did not gain significant traction upon its release. Additionally, Apple has invested over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial investments, Apple TV+ holds a mere 0.2% of the television viewership market in the United States, receiving fewer views in a month than Netflix achieves in a single day. The service is also facing challenges in subscriber growth. While Apple’s streaming service issues have not raised major concerns for the company—given that streaming is not a primary focus—there are indications that the era of unrestricted spending is coming to an end. Apple has been signaling this shift by hesitating to renew shows for third seasons, according to Bloomberg.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, but this may change following the company’s hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.