Apple is re-evaluating its spending strategy for TV shows and movies, acknowledging that it has invested significantly in original content, much of which remains under the radar. The company has reportedly spent around $20 billion on content for its streaming service, Apple TV+, but has not seen a substantial return on that investment.
According to a report, Apple executive Eddy Cue has been holding discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, in an effort to control budgets and shift away from its image as the largest spender in the industry. The service has made notable expenditures, including $250 million for the limited series “Masters of Air,” which garnered minimal attention upon its release.
Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite these financial commitments, Apple TV+ holds a mere 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in growing its subscriber base.
While Apple does not consider streaming to be central to its business model, the company appears to be moving away from unrestricted spending, as indicated by its hesitance to renew certain shows for third seasons. Furthermore, Apple TV+ remains the last major streaming platform without an advertising tier, a situation likely to change following the appointment of Joseph Cady, an ad executive from NBCUniversal, earlier this year.