Apple is recognizing that its expenditures on TV shows and films, many of which viewers are unfamiliar with, are excessive. According to a report from Bloomberg, the company is reassessing its strategy for Apple TV+ after investing a staggering $20 billion in original content.
Bloomberg indicated that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scale back on production budgets. Reports suggest that Van Amburg and Erlicht are working to improve the platform’s image as the highest spender in the industry.
Apple has made significant financial commitments for content, including a notable $250 million for the miniseries “Masters of Air,” which debuted this year but received minimal viewer engagement. Additionally, the company has invested over $500 million in films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial financial outlay, Apple TV+ captures only 0.2% of TV viewership in the US, receiving fewer views in a month than Netflix does in just 24 hours, and it has faced challenges in growing its subscriber base.
Although Apple TV+ has encountered difficulties, the company appears unconcerned, as streaming is not a primary focus of its business model. However, the era of unrestricted spending is likely coming to an end, as reflected in its hesitance to renew shows for third seasons.
Moreover, Apple TV+ is currently the last major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.