Apple is recognizing that it may be overspending on original TV shows and movies that are largely unknown to viewers. The company has reportedly invested around $20 billion in content for its streaming platform, Apple TV+, but is now considering a new strategy to manage its budget more effectively.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to reassess spending habits. The executives have indicated that the platform aims to shift away from its image as the industry’s largest spender.
Among its substantial investments, Apple allocated $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant attention. Additionally, the company is believed to have spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty expenditures, Apple TV+ holds a mere 0.2% of the total TV viewership in the United States, receiving fewer views in a month than Netflix attracts in just one day. The platform has also faced challenges in growing its subscriber base.
However, Apple does not appear overly concerned about these issues, as streaming services are not central to its business model. That said, the tech giant seems to be moving towards more controlled spending, as indicated by its hesitation to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service that does not offer an ad-supported tier. This may soon change, as the company recently hired Joseph Cady, an advertising executive from NBCUniversal.