Apple is reevaluating its approach to content spending on Apple TV+ after reportedly investing around $20 billion in original programming, according to a Bloomberg report. The company has acknowledged that it is spending excessively on shows and films that have not gained significant recognition or viewership.
Executives, including Eddy Cue, are meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss strategies to reduce budgets and shift away from a perception of being the most significant spender in the streaming industry. Apple has made considerable investments in high-profile projects, such as $250 million for the miniseries “Masters of Air,” which received minimal audience engagement.
Additionally, Apple has spent over $500 million on movies from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this heavy expenditure, Apple TV+ captures just 0.2% of television viewership in the United States, falling far behind competitors like Netflix, which garners more views in a single day than Apple TV+ does in an entire month. The platform has also faced challenges in growing its subscriber base.
Although these issues have not significantly impacted Apple’s overall business, as streaming is not its primary focus, the company’s era of unrestricted spending appears to be waning. This change is reflected in its hesitation to renew shows for third seasons, as noted in Bloomberg’s analysis.
Currently, Apple TV+ remains the only major streaming service without an advertising tier, but this could change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.