Apple is reportedly aware of its excessive spending on original TV shows and movies that many viewers may not recognize or have seen. The company is now considering a different strategy for Apple TV+, having invested around $20 billion in original content, according to Bloomberg.
Executives, including Eddy Cue, have been discussing budget reductions with studio heads Zack Van Amburg and Jamie Erlicht, who are also aiming to change Apple TV+’s image as the industry’s largest spender. For instance, Apple invested $250 million in the underwhelming miniseries “Masters of Air” released this year.
Moreover, the streaming service has expended more than $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this massive spending, Apple TV+ holds only 0.2% of the US TV viewership and garners fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in subscriber growth.
While these setbacks may not alarm Apple significantly since streaming isn’t its primary business focus, the era of unrestricted spending appears to be waning. This shift has already been reflected in their reluctance to renew shows for third seasons, as indicated by Bloomberg’s research.
Notably, Apple TV+ remains the only major streaming service lacking an advertising tier. However, this may soon change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.