Apple is reportedly aware that it has been overspending on its TV shows and movies, many of which have not gained traction with viewers. The company is now considering a new strategy for its streaming service, Apple TV+, after investing around $20 billion in original content.
According to Bloomberg, Apple executive Eddy Cue has held discussions with studio chiefs Zack Van Amburg and Jamie Erlicht regarding the need to control production budgets. The two executives have indicated that the streaming platform aims to distance itself from the perception of being the largest spender in the industry.
Apple has made substantial financial commitments for original offerings, including a notable $250 million for the miniseries “Masters of the Air,” which barely registered with audiences upon its release this year. Additionally, the service has invested over $500 million on films directed by famous filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant expenditures, Apple TV+ commands only 0.2% of television viewership in the United States, attracting fewer viewers in an entire month than Netflix does within just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple has not prioritized streaming as a central aspect of its business, the company appears to be shifting towards more controlled spending. This change is reflected in its hesitation to renew series for third seasons, as noted in Bloomberg reports.
Interestingly, Apple TV+ remains the only major streaming platform without an advertising tier, but this may soon change. Earlier this year, the company brought on Joseph Cady, a former advertising executive from NBCUniversal, signaling a potential pivot in its business strategy.