Apple is reportedly reevaluating its spending strategy for original content on Apple TV+ after investing around $20 billion, according to Bloomberg. The company has acknowledged that it has been overspending on shows and films, many of which have not gained significant audience recognition.
Executives at Apple, including Eddy Cue, have been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing budgets. They have expressed a desire to move away from the image of being the largest spender in the industry.
Apple’s substantial financial commitments include $250 million for the miniseries “Masters of Air,” which was released this year but received little attention. Additionally, over $500 million has been allocated to films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ commands only 0.2% of TV viewership in the U.S., registering fewer views in a month than Netflix attracts in just one day. The platform has also faced challenges in boosting its subscriber base.
While Apple’s core business focus is not on streaming, the company appears to be shifting its approach by signaling a decrease in unlimited spending. This change is evident as it has been hesitant to renew shows for third seasons, according to recent data from Bloomberg.
Interestingly, Apple TV+ remains the only major streaming service without an advertising tier, although this is expected to change soon following the hiring of Joseph Cady, a former NBCUniversal advertising executive.