Apple TV+ Faces Content Spending Reckoning as Viewership Lags

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Apple is recognizing that it is investing excessively in original television shows and movies that may not be well known to the public.

In light of ongoing delivery delays and worker stoppages, Boeing is seeking to raise $19 billion to address these challenges.

According to reports, Apple is reassessing its strategy for Apple TV+ after spending around $20 billion on original content. Executive Eddy Cue has been holding discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about tightening budgets, as they aim to move away from the image of being the highest spender in the industry.

Apple has spent substantial amounts on productions, including $250 million for the miniseries “Masters of the Air,” which struggled to gain viewer traction upon its release. Additionally, over $500 million has been invested in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.

Despite the massive expenditures, Apple TV+ holds only 0.2% of the total TV viewership in the US, with its viewership for a month being less than what Netflix achieves in just one day. The service has also encountered difficulties in boosting its subscriber base.

Although Apple TV+ faces these challenges, the company doesn’t seem overly concerned, as streaming does not constitute a central part of its business. However, it appears that the era of unlimited spending is coming to an end, as indicated by its hesitance to renew several shows for a third season.

Notably, Apple TV+ is the only major streaming service that does not offer an advertising-supported tier. This could change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.

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