Apple acknowledges its excessive spending on original TV shows and movies, many of which are not widely recognized. According to reports, the company is reevaluating its strategy for Apple TV+ after investing a staggering $20 billion in original content.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about managing production budgets. The studio heads are reportedly aiming to alter the platform’s image as the top spender in the industry.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of the Air,” which saw minimal audience engagement. The company has also bankrolled over $500 million for films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its considerable outlay, Apple TV+ holds only a 0.2% share of TV viewership in the United States, accumulating fewer views in a month than Netflix garners in just one day. The platform has faced challenges in boosting its subscriber base.
While the streaming service’s difficulties don’t seem to have caused major concern for Apple, given that streaming isn’t central to its business model, it has indicated a shift away from unrestricted spending. Signs of this change include a hesitation to renew series for third seasons.
Currently, Apple TV+ stands out as the last major streaming service that has not introduced an advertising tier, a situation likely to evolve following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.