Apple is currently reassessing its spending strategy for original content on Apple TV+, having invested a staggering $20 billion in shows and movies that many viewers may not be familiar with.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ heads Zack Van Amburg and Jamie Erlicht regarding the need to manage budgets more effectively. The leadership team has expressed a desire to move away from being recognized as the largest spender in the industry.
The company made notable expenditures, including $250 million for the miniseries “Masters of Air,” which premiered this year but failed to attract significant attention. Additionally, Apple has invested over $500 million in films from high-profile filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ only accounts for 0.2% of television viewership in the United States, garnering less viewership in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While the tech giant does not appear overly concerned about the streaming service’s performance, as it is not central to its core business, it seems the era of unrestricted spending may be coming to an end. This trend is already reflected in its reluctance to renew shows for third seasons.
Notably, Apple TV+ remains the last significant streaming platform without an advertising tier. However, this may change with the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.