Apple has recognized that it is investing excessively in television shows and movies that many viewers may not even be aware of.
In an effort to reassess its strategy, Apple is considering a new approach for its streaming service, Apple TV+, after reportedly spending an astonishing $20 billion on original content, according to Bloomberg.
Sources indicate that Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. It appears that both Van Amburg and Erlicht have expressed a desire for the service to distance itself from its image as the industry’s largest spender.
Apple’s financial commitments have included significant amounts for projects like the miniseries “Masters of Air,” which cost $250 million but garnered little attention upon release. Additionally, the company has invested over $500 million in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Though Apple has incurred substantial expenses, its market share remains modest, with Apple TV+ capturing only 0.2% of U.S. TV viewership. In terms of audience figures, the platform receives fewer views in an entire month than Netflix does in just 24 hours, and it has faced challenges in growing its subscriber base.
While Apple TV+ has faced these obstacles, the broader Apple organization does not prioritize streaming as a core business, which may explain a lack of concern regarding the service’s performance. Nevertheless, signs indicate that the era of unrestricted spending may be coming to an end, as seen in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier in the year.