Apple is reportedly aware that it has been investing excessively in TV shows and movies that many viewers may not recognize or be familiar with. The company is currently considering a more strategic approach to its streaming platform, Apple TV+, following a staggering expenditure of $20 billion on original content.
According to reports, Apple executive Eddy Cue has been consulting with studio heads Zack Van Amburg and Jamie Erlicht to discuss ways to reduce budgets. The studio chiefs have indicated that the platform aims to alter its image as the largest spender in the industry.
Apple has notably invested significant amounts in projects such as the $250 million miniseries “Masters of Air,” which did not achieve substantial viewership upon its release. Additionally, over $500 million has been allocated for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its considerable financial outlay, Apple TV+ holds only a 0.2% share of TV viewership in the United States, garnering fewer views in an entire month than Netflix does in just a single day. The platform has faced challenges in increasing its subscriber base.
While Apple TV+’s struggles do not seem to cause concern for the tech giant—since streaming is not central to its business model—the era of unchecked spending may soon come to an end. This is reflected in the company’s hesitance to renew shows for third seasons, as highlighted by recent data.
Currently, Apple TV+ is the only major streaming service that does not offer an advertising tier. However, this may change following the recruitment of advertising executive Joseph Cady from NBCUniversal earlier this year.