Apple is aware that it has been overspending on original TV shows and movies that are often unfamiliar to viewers. The tech giant has reportedly invested around $20 billion in content for its streaming service, Apple TV+, and is now reconsidering its spending strategy.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with the studio heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about controlling budgets more effectively. They have expressed a desire to move away from the image of being the industry’s largest spender on content.
Notable expenditures include a staggering $250 million for the miniseries “Masters of Air,” which garnered minimal audience attention upon its release. Additionally, more than $500 million has been allocated for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ holds only 0.2% of TV viewership in the United States, with viewership numbers that pale in comparison to Netflix, which can achieve more views in a single day than Apple TV+ does in an entire month. The platform has also encountered challenges in attracting new subscribers.
While Apple seems unconcerned about these streaming challenges—given that it’s not a primary focus for the company—the era of unrestricted spending may be coming to an end. This shift is suggested by a reluctance to renew shows for third seasons, as reported by Bloomberg.
Furthermore, Apple TV+ is currently the only major streaming service without an advertising tier, but this status may soon change following the appointment of Joseph Cady, a former NBCUniversal ad executive, earlier this year.