Apple is reassessing its spending strategies for Apple TV+, recognizing that it has been investing excessively in original content, much of which remains largely unknown to audiences.
Recent reports indicate that after spending an astonishing $20 billion on original programming, Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht about controlling costs. The duo has reportedly expressed a desire to alter the platform’s image as the largest spender in the industry.
Apple’s extravagant investments include $250 million for the miniseries “Masters of Air,” which faced a disappointing reception upon its release this year. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ holds only a 0.2% share of TV viewership in the U.S., attracting fewer viewers in a month than Netflix averages in a single day. The platform has also encountered challenges in boosting its subscriber numbers.
Although Apple TV+’s struggles do not seem to pose a significant concern for the tech giant, given that streaming is not central to its business model, the era of unchecked spending appears to be coming to an end. Indications of this shift have emerged, particularly in the hesitation to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this may soon change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.