Apple is aware that it is investing excessively in TV shows and movies that many viewers may not even recognize. According to a report from Bloomberg, the company is reconsidering its strategy for Apple TV+ after spending around $20 billion on original content.
Apple executive Eddy Cue has reportedly been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht to tighten budget controls. The duo has emphasized the need for the streaming service to shift away from its image as the industry’s biggest spender.
The tech giant has made significant financial commitments, such as the $250 million it invested in the miniseries “Masters of Air,” which debuted this year but garnered minimal audience interest. Additionally, over $500 million has been allocated to films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ commands a mere 0.2% of TV viewership in the United States and garners fewer monthly views than Netflix achieves in just 24 hours. Furthermore, attracting new subscribers has proven challenging.
While Apple doesn’t primarily rely on streaming for its revenue, it appears to be reassessing its approach to spending, as evidenced by its hesitancy to renew shows for additional seasons. Moreover, Apple TV+ remains the last major streaming service without an advertising tier, a situation likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.