Apple has recognized that it is overspending on original TV shows and movies that may not be widely known or viewed. The company is reportedly considering a change in strategy for its streaming service, Apple TV+, having invested around $20 billion in content creation, according to a Bloomberg report.
The report indicates that Apple executives, led by Eddy Cue, have been holding discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, regarding budget cuts. It appears that there is a desire to move away from the image of being the largest financial backer in the industry.
Apple’s significant spending includes a staggering $250 million for the miniseries “Masters of Air,” which generated little viewer interest upon its release this year. Additionally, the company has invested over $500 million into films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its enormous financial commitments, Apple TV+ commands only 0.2% of television viewership in the United States, drawing fewer viewers in a month than Netflix attracts in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple has not prioritized streaming as a central aspect of its business, it seems that the era of unrestricted spending may be coming to an end. This shift is already reflected in their hesitation to renew series for a third season, according to Bloomberg data.
Notably, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier, a situation that appears set to change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.