Apple is acknowledging that it has been overspending on television shows and movies, many of which may not even be familiar to viewers. The company is reassessing its strategy for Apple TV+ after reportedly investing a staggering $20 billion in original content.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to bring budgetary constraints to the forefront. The studio chiefs have conveyed that the streaming service aims to shake off its image as the biggest spender in the industry.
The tech giant has made significant investments in various projects, such as spending $250 million on the miniseries “Masters of Air,” which launched this year yet failed to attract much audience. Furthermore, it has expended over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
In spite of this massive outlay, Apple TV+ holds a mere 0.2% of the television viewership market in the United States, equating to significantly fewer views in a month compared to the number Netflix garners in just 24 hours. Additionally, the platform has faced challenges in boosting its subscriber count.
While Apple TV+’s struggles do not appear to be causing much concern for the parent company—since streaming is not its primary focus—the era of its unrestricted spending seems to be coming to an end. This shift is hinted at by the company’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this may soon change with the recent hiring of Joseph Cady, a former advertising executive at NBCUniversal.