Apple is reportedly aware that it is investing heavily in television shows and films that may not resonate with viewers. The company is currently reassessing its strategy for Apple TV+ after spending around $20 billion on original content, as reported by Bloomberg.
Executives at Apple, including Eddy Cue, have been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht to reduce spending on content. They are working to change the perception of the platform as the top spender in the industry.
Notably, Apple has invested significant sums in various projects, including $250 million for the miniseries “Masters of Air,” released this year but received minimal audience engagement. Additionally, over $500 million has been directed towards films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial commitments, Apple TV+ holds only a 0.2% share of television viewership in the US, with its monthly viewer numbers falling short of those amassed by Netflix in just one day. The company has also faced challenges in growing its subscriber base.
However, the streaming service’s struggles do not seem to be a major concern for Apple, as streaming is not considered a primary facet of its business model. That said, indications suggest that the era of unlimited spending may be coming to an end, with the company already showing hesitance in renewing some shows for third seasons, as per Bloomberg’s findings.
Additionally, Apple TV+ is the only major streaming platform without an advertising option, a situation likely to shift following the appointment of Joseph Cady, an ad executive from NBCUniversal, earlier this year.