Apple is reportedly recognizing that it is investing excessively in original TV shows and movies that many viewers may not be familiar with. According to Bloomberg, the company is re-evaluating its strategy for Apple TV+ after spending around $20 billion on original content.
Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget constraints. The studio heads are pushing for a shift away from the platform’s status as the biggest spender in the industry.
The company has made significant investments in productions, including $250 million for the miniseries “Masters of Air,” which received little attention upon its release this year. In addition, it has spent over $500 million on films by acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial spending, Apple TV+ holds only 0.2% of television viewership in the US, with its monthly viewer count falling short of what Netflix attracts within just 24 hours. The service has also faced challenges in boosting its subscriber base.
Although these issues don’t seem to pose a significant concern for Apple, as streaming isn’t a primary focus of its business, the era of unrestricted spending appears to be coming to an end. This is evidenced by the company’s reluctance to renew several shows for third seasons.
Currently, Apple TV+ stands out as the only major streaming service that does not offer an ad-supported option. However, this situation may change now that the company has recruited advertising executive Joseph Cady from NBCUniversal earlier this year.