Apple is recognizing that its expenditures on original television shows and movies may be excessive, particularly on content that many viewers may not be familiar with. The company has invested around $20 billion in original content for its streaming service, Apple TV+, prompting a reassessment of its spending strategy.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. There are indications that the streaming platform aims to change its image as the leading spender in the industry.
Significant financial commitments have been made by Apple, which includes a staggering $250 million for the miniseries “Masters of Air,” released earlier this year yet met with a lukewarm reception. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ only accounts for 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix generates in just a day. The service has encountered difficulties in expanding its subscriber base.
Although issues surrounding Apple TV+ don’t appear to be a pressing concern for Apple, given that streaming isn’t a central aspect of its business model, signs suggest that the era of unlimited spending could be coming to an end. This is reflected in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that is likely to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.