Apple has recognized that it is investing excessively in TV shows and movies that many viewers may not know about.
According to a report by Bloomberg, the company is considering a new strategy for its Apple TV+ service after spending an astonishing $20 billion on original content. Apple executive Eddy Cue has been engaging with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to discuss ways to curb budgets. Reports suggest that the leadership is aiming to shed the image of Apple TV+ as the largest spender in the industry.
Apple has made significant financial commitments for various productions, including a hefty $250 million for the miniseries “Masters of Air,” released this year but failing to capture audience attention. Additionally, over $500 million has been allocated for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, achieving fewer views in a month than Netflix sees in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s difficulties do not seem to be a major concern for the tech giant, as streaming is not its primary focus, the era of unrestricted spending appears to be approaching an end. This shift is supported by the company’s hesitance to renew shows for their third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ is the last significant streaming service without an advertising tier, a situation likely to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.