Apple is acknowledging that it is investing excessively in television shows and films that many viewers are likely unfamiliar with. The tech giant is reportedly considering a new strategy for its Apple TV+ service after spending approximately $20 billion on original content, according to Bloomberg.
Bloomberg noted that Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. Both Van Amburg and Erlicht have been communicating a desire to shift the platform’s image away from being the highest spender in the industry.
Apple has made considerable financial commitments to various projects, including $250 million for the miniseries “Masters of Air,” released this year, which failed to generate significant interest. Furthermore, the company has invested over $500 million in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, as reported by Bloomberg.
Despite its substantial expenditures, Apple TV+ holds a mere 0.2% of television viewership in the United States, attracting fewer viewers monthly than Netflix in just a single day. The service has also faced challenges in boosting its subscriber numbers.
Although Apple TV+ has encountered these difficulties, the streaming sector is not central to the company’s overall business model, and thus, there doesn’t appear to be significant concern from the tech giant. However, it seems that the era of unrestricted spending may be coming to an end, particularly as the company has signaled reluctance to renew shows for third seasons, based on Bloomberg’s findings.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier. This situation may change soon, as the company recently brought in Joseph Cady, an advertising executive from NBCUniversal, to bolster its strategies.