Apple has come to realize that its spending on original TV shows and movies, many of which are relatively unknown, is excessively high.
The company is considering adjusting its strategy for Apple TV+ following substantial investments totaling around $20 billion in original content, as reported by Bloomberg. According to sources, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, regarding the need to control budgets. The studio leaders have also indicated that the streaming service aims to move away from its image as the industry’s highest spender.
Apple’s financial commitments have included considerable amounts for various productions, such as $250 million for the miniseries “Masters of Air,” which had minimal impact upon release. Additionally, Apple TV+ has invested over $500 million on films featuring well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ holds only 0.2% of television viewership in the United States, accumulating fewer views in an entire month than Netflix garners in a single day. Furthermore, Apple TV+ has faced challenges in growing its subscriber base.
While Apple does not consider streaming a primary part of its business and seems unconcerned about the issues facing Apple TV+, its unrestricted spending appears to be on the brink of change. The company has already exhibited signs of scaling back by hesitating to renew shows for third seasons, according to Bloomberg data.
Interestingly, Apple TV+ stands out as the only major streaming service without an ad-supported tier, though this may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.