Apple is reportedly aware of its excessive spending on original TV shows and movies, many of which are not widely recognized. The company is now considering a revised strategy for Apple TV+ after investing approximately $20 billion in content, 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 controlling budgets. They have allegedly indicated a desire to alter the platform’s image as the industry’s largest spender.
The company has made significant investments in various productions, spending $250 million on the miniseries “Masters of Air,” which debuted this year with minimal impact. Additionally, Apple has allocated over $500 million to films by notable directors, including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these enormous financial commitments, Apple TV+ currently holds just 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix garners within 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple’s streaming operations do not constitute a primary focus for the tech giant, the era of unrestricted spending appears to be coming to an end, as evidenced by the company’s hesitance to renew programs for third seasons.
Notably, Apple TV+ is the last significant streaming platform without an advertisement-based tier. However, this is likely to change with the recent hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.