Apple is aware that it has been overspending on television shows and movies that are not widely recognized by viewers.
The tech giant is reportedly adopting a new strategy for Apple TV+ after a staggering investment of $20 billion in original content, as reported by Bloomberg. Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss tightening budgets.
According to insiders, Van Amburg and Erlicht have indicated that the platform aims to change its image as the largest spender in the streaming industry. Apple has notably invested substantial amounts in productions, including $250 million for the miniseries “Masters of Air,” which failed to generate significant traction upon release. Moreover, the company has spent over $500 million on films by acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive spending, Apple TV+ holds just 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple TV+’s difficulties do not seem to be a major concern for the broader company, as streaming isn’t central to its business model, it appears that the era of unlimited spending may be coming to an end. This shift is indicated by the company’s hesitation to renew certain shows for a third season, as per Bloomberg’s analysis.
Currently, Apple TV+ remains the only significant streaming service without an ad-supported tier, although this is expected to change following the recent hiring of Joseph Cady, an ad executive from NBCUniversal.