Apple is aware of its excessive spending on television shows and films that many viewers may not even recognize.
The tech giant is reconsidering its strategy for Apple TV+, having invested approximately $20 billion in original programming, according to a report by Bloomberg. Apple executive Eddy Cue has been in discussions with the service’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. This comes as both executives have indicated a desire for the platform to move away from its image as the industry’s largest spender.
Apple has made substantial financial commitments towards its productions, including $250 million for the miniseries “Masters of the Air,” which premiered this year but failed to generate significant viewer engagement. Furthermore, the company has reportedly invested over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy investments, Apple TV+ holds merely 0.2% of the television viewership in the United States, attracting fewer viewers in an entire month than Netflix typically gathers in just 24 hours. The platform has also faced challenges in boosting its subscriber count.
Although Apple TV+ is experiencing these issues, they do not appear to be a major concern for the company, as streaming services are not central to its main business operations. However, indications suggest that its period of unrestricted spending may be coming to an end, particularly as it has shown hesitance in renewing shows for third seasons.
Notably, Apple TV+ remains the final major streaming service without an advertising tier, a status that could soon change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.