Apple is recognizing that its significant investment in original content for Apple TV+ may not be yielding the desired results. The tech giant has reportedly spent around $20 billion on various shows and movies, some of which have gone unnoticed by the public.
According to Bloomberg, Apple executive Eddy Cue has been discussing strategies with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, to reduce expenses. They have indicated a desire to move away from being known as the biggest spender in the industry.
Apple’s financial commitments include a staggering $250 million on the miniseries “Masters of Air,” which launched this year but failed to gain traction. In addition, the company has invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy spending, Apple TV+ accounts for only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in boosting its subscriber base.
Although Apple does not appear overly concerned about the challenges facing its streaming service, as it is not a primary aspect of its business, it seems poised to shift away from unlimited spending. There are indications of this change, including a hesitance to renew certain shows for third seasons.
Notably, Apple TV+ is currently the only major streaming platform without an advertising tier, but that could change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.