Apple is acknowledging that its spending on TV shows and movies has been excessive, particularly on content that has gone largely unnoticed by audiences.
The tech giant is reportedly reassessing its strategy for Apple TV+ after investing an astonishing $20 billion in original content, according to Bloomberg. Executives at Apple, including Eddy Cue, have been discussing budgetary constraints with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht. These discussions suggest a desire to move away from the service’s image as the largest spender in the industry.
Apple has invested significant amounts in high-profile projects, such as a $250 million budget for the miniseries “Masters of Air,” which received minimal viewer interest upon its release. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial outlay, Apple TV+ holds only a mere 0.2% of the television viewership in the United States, with its monthly audience being eclipsed by that of Netflix within just a day. The platform has faced challenges in attracting new subscribers.
Although Apple TV+ has encountered difficulties, this has not raised alarms within the larger organization, as streaming services do not form the central focus of Apple’s business model. Nonetheless, the company’s era of unrestricted spending appears to be drawing to a close, especially with hints that it may avoid renewing shows for a third season.
Notably, Apple TV+ is the last significant streaming service without an advertising option. This could soon change following the appointment of Joseph Cady, a former advertising executive at NBCUniversal, earlier this year.