Apple is acknowledging that it has been overspending on its original TV shows and movies, many of which have gone largely unnoticed by audiences. Reports indicate that the company is now considering a shift in strategy for its Apple TV+ service after investing approximately $20 billion in original content.
Eddy Cue, an Apple executive, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about budget constraints. Insiders suggest that the goal is to move away from its current reputation as the largest spender in the industry.
Apple’s significant financial commitments include $250 million for the miniseries “Masters of Air,” released this year, which failed to make a substantial impact. Additionally, the company has invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive outlay, Apple TV+ holds only a small 0.2% share of TV viewership in the United States, garnering fewer views in a month than Netflix obtains in just 24 hours. The platform has also faced challenges in increasing its subscriber base.
While Apple has not shown considerable concern over the struggles of Apple TV+, given that streaming is not a fundamental aspect of its business model, it seems that the era of unrestricted spending is nearing its end. This is evident in the company’s hesitance to renew shows for additional seasons.
Currently, Apple TV+ is the last of the major streaming services without an advertising tier, but this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.