Apple is recognizing that it has been overspending on television shows and films that many viewers may not even be aware of. The tech giant has reportedly invested around $20 billion in original content for its Apple TV+ streaming service, leading to discussions among executives about finding a new strategy to control costs.
Eddy Cue, an Apple executive, has been consulting with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and altering the service’s perception as the largest spender in the industry. This shift comes after significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which did not gain much traction upon release.
In addition to this, Apple has allocated over $500 million for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these investments, Apple TV+ captures only 0.2% of television viewership in the United States, receiving fewer overall views in a month than Netflix does in just a single day, and it has faced challenges in growing its subscriber base.
Although Apple is not overly concerned about the issues facing its streaming service, as it is not a fundamental part of its business model, signs indicate that the era of unrestricted spending may soon come to an end. This is evident in the company’s caution regarding renewing shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but changes may be on the horizon following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.