Apple is reportedly recognizing that it has been overspending on original television shows and movies, many of which audiences may not be aware of or might not have seen. The company is said to be re-evaluating its approach to Apple TV+ after investing an astonishing $20 billion in content creation, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about curbing production budgets. These executives have also indicated that the streaming service aims to move away from its image as the largest spender in the industry.
The corporation has made significant financial commitments, such as the $250 million spent on the miniseries “Masters of Air,” which had limited viewer engagement upon its release this year. Additionally, Apple has invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, as reported by Bloomberg.
Despite its substantial expenditures, Apple TV+ accounts for a mere 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. Furthermore, the platform has faced challenges in boosting subscriber numbers.
Though Apple TV+’s challenges might not be a significant concern for the tech company—given that streaming isn’t central to its business model—its era of unrestricted spending appears to be coming to an end. This is evidenced by a hesitancy to renew shows for third seasons, as per Bloomberg’s findings.
Currently, Apple TV+ stands out as the last major streaming service without an advertising tier. This status could soon change, given the recent hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.