Apple is reportedly recognizing that its spending on original TV shows and movies has reached unsustainable levels, with investments totaling around $20 billion. The company is reassessing its strategy for Apple TV+, driven by discussions among key executives including Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht, who are exploring ways to reduce budgets and alter the platform’s image as the industry’s largest spender.
In recent years, Apple has made substantial financial commitments to various projects, including a remarkable $250 million for the miniseries “Masters of Air,” which did not gain significant traction upon release. The company has also invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ commands a minimal share of the U.S. TV viewership, accounting for just 0.2%, with its monthly views falling short of what Netflix achieves within a single day. Furthermore, Apple TV+ has faced challenges in attracting new subscribers.
While this situation might not concern Apple too deeply, given that streaming is not central to its overall business model, the era of unrestrained spending appears to be coming to an end. The company has already indicated this shift by showing hesitance in renewing certain shows for third seasons.
Notably, Apple TV+ is the last major streaming service without an advertising tier, although this could change soon following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.