Apple is recognizing that it may be overspending on television shows and films that most viewers are unfamiliar with.
The company is reportedly re-evaluating its strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg. Apple executive Eddy Cue has been engaging with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about the need to control budgets more effectively. The team is also reportedly working towards changing the service’s image as the leading spender in the streaming industry.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which failed to gain much attention upon its release this year. The service has also invested over $500 million in films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these considerable expenditures, Apple TV+ holds only 0.2% of television viewership in the US, attracting significantly fewer views in a month than Netflix achieves in just 24 hours. Additionally, the platform has faced challenges in boosting its subscriber base.
Although Apple seems largely unfazed by the performance of Apple TV+, as streaming isn’t its primary focus, the era of unchecked spending appears to be drawing to a close. Indications of this shift can be seen in its hesitance to renew shows for third seasons, as reported by Bloomberg.
Moreover, Apple TV+ is currently the only major streaming service that does not offer an advertising tier, a situation that may change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.