Apple is recognizing that its expenditure on original TV shows and movies has been excessive, investing a staggering $20 billion without significant returns.
According to reports, the company is reevaluating its strategy for Apple TV+ as executives like Eddy Cue have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They have also indicated a desire to move away from being perceived as the industry’s top spender.
Apple’s financial outlay has included $250 million on the miniseries “Masters of Air,” which garnered minimal attention upon its release. Additionally, the company has invested over $500 million in films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this enormous spending, Apple TV+ holds a mere 0.2% of television viewership in the U.S., attracting far fewer viewers in a month than Netflix secures in just one day. The platform has also faced challenges in boosting its subscriber base.
While the streaming division does not represent Apple’s core business, the company’s dwindling budget for original programming is becoming evident, as shown by its hesitance to renew shows for third seasons. Apple TV+ remains the only major streaming service lacking an ad-supported option, but this may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive.