Apple acknowledges that it has been overspending on TV shows and movies that many viewers may not recognize.
In a significant move, Mars, known for M&M’s, is acquiring Kellanova, the maker of Pop-Tarts, marking one of the year’s largest deals.
The company is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content, as noted by Bloomberg.
Executives at Apple, including Eddy Cue, have been in discussions with Apple TV+ heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The duo has conveyed a desire to shift the platform’s image away from being seen as an extravagant spender in the industry.
Apple has invested substantial amounts in projects such as the miniseries “Masters of Air,” for which it paid $250 million but which didn’t gain significant traction upon release. Reports indicate that over $500 million has been allocated to films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its considerable financial investments, Apple TV+ accounts for just 0.2% of television viewership in the U.S. and attracts fewer views in a month than Netflix receives in just 24 hours. Additionally, the platform has faced challenges in boosting its subscriber base.
While Apple has not expressed immediate concern over Apple TV+’s performance, as streaming does not constitute a primary revenue source for the company, signs indicate a shift away from unchecked spending. This is evident in its hesitance to renew series for a third season.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this may change following the recruitment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.