Apple acknowledges that it has been investing heavily in TV shows and movies that many viewers may not be familiar with. The company is reportedly reevaluating its spending strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about trimming budgets. The studio chiefs are reportedly aiming to change the platform’s image as the largest spender in the industry.
Among its significant expenditures, Apple has allocated $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain much traction. The company has also invested more than $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ only holds 0.2% of television viewership in the U.S., garnering fewer views in a month than Netflix receives in just 24 hours. The streaming service has also faced difficulties in boosting its subscriber numbers.
While Apple TV+’s challenges do not appear to be a major concern for the tech giant, given that streaming is not central to its business model, the era of unlimited spending may be coming to an end. This shift is indicated by the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier. However, this may change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.