Apple recognizes that it has overspent on TV shows and movies that many viewers may not even know exist.
After investing around $20 billion in original content for Apple TV+, the company is considering a new strategy, as reported by Bloomberg. Apple executive Eddy Cue has been in talks with the platform’s studio heads, Zack Van Amburg and Jamie Erlicht, about controlling costs. The duo has indicated a desire for the streaming service to improve its reputation, moving away from the image of being the largest spender in the industry.
Apple has made significant financial commitments for various projects, such as the $250 million spent on this year’s miniseries “Masters of Air,” which garnered minimal attention. Additionally, the platform invested more than $500 million for films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these considerable expenditures, Apple TV+ holds a mere 0.2% share of television viewership in the United States, receiving fewer views in a month than Netflix achieves in just one day. The service has also faced challenges in boosting its subscriber base.
While Apple’s streaming service struggles may not be a primary concern for the tech giant, as streaming is not central to its business model, the era of unrestricted spending appears to be coming to an end. This shift is reflected in the company’s hesitance to renew shows for third seasons, as suggested by recent Bloomberg data.
Interestingly, Apple TV+ remains the last significant streaming service without an advertising tier. That situation may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.