Apple is recognizing that it may be overspending on original television shows and films that are unfamiliar to most viewers. The company reportedly has invested around $20 billion in content for Apple TV+, prompting a reevaluation of its spending strategy.
According to a Bloomberg report, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to address budget constraints. The duo has indicated that the streaming service aims to move away from its image as the largest spender in the industry.
Apple’s investment has included significant amounts for productions like the miniseries “Masters of Air,” which cost $250 million but received minimal engagement upon release. Additionally, the company has allocated over $500 million for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these financial efforts, Apple TV+ commands a mere 0.2% of television viewership in the United States, lagging behind competitors like Netflix, which garners more views within a single day than Apple does in an entire month. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s underperformance doesn’t seem to alarm the tech giant—since streaming isn’t a primary focus of its business—the era of unchecked spending may be coming to an end. The company has already begun to show hesitation in renewing programs for third seasons, as reported by Bloomberg.
Notably, Apple TV+ is the last major streaming service that has yet to introduce an advertisement-supported tier. This may soon change, as the company recently appointed Joseph Cady, a former NBCUniversal advertising executive, to strengthen its approach in that area.