Apple is reportedly aware that it has been spending excessively on original TV shows and movies, many of which remain obscure to the average viewer.
According to a recent Bloomberg report, Apple is revising its strategy for Apple TV+ after investing an astonishing $20 billion in original content. Executives, including Eddy Cue, have engaged in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, regarding budget adjustments. The studio chiefs are said to be eager to alter the perception of the service as the largest spender in the streaming industry.
Apple’s financial commitment includes significant amounts, such as $250 million for the miniseries “Masters of Air,” which premiered this year without making a considerable impact. Furthermore, the company has invested over $500 million on films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this hefty spending, Apple TV+ accounts for only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix achieves in just one day. The platform has also faced challenges in attracting new subscribers.
While Apple has displayed little concern over the issues plaguing its streaming service, as it is not a primary focus of the company’s business, it appears that the era of unchecked spending may be ending. This shift is reflected in the growing reluctance to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertisement-supported tier, a situation that may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.