Apple is reportedly aware that it is investing excessively in television shows and movies that many viewers may not know or have even heard of. The company is re-evaluating its strategy for Apple TV+ after spending an estimated $20 billion on original content.
According to reports, Apple executive Eddy Cue has been in discussions with the service’s studio heads, Zack Van Amburg and Jamie Erlicht, about cutting back on expenses. The duo has also suggested that the platform seeks to change its image as the streaming industry’s largest spender.
Apple has invested substantial amounts in specific projects, such as the $250 million miniseries “Masters of Air,” which launched this year but failed to gain popularity. The company has also poured over $500 million into films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant spending, Apple TV+ holds just 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple has not shown alarm over Apple TV+’s issues, recognizing that streaming is not its primary business focus, the end of its unrestricted spending appears to be approaching. This shift is reflected in the company’s hesitation to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service that does not offer an ad-supported tier. However, this may soon change as the company recently hired ad executive Joseph Cady from NBCUniversal.