Apple is reassessing its spending on television shows and movies, acknowledging that it has invested heavily in content that has not gained significant attention. The company is looking into new strategies for its Apple TV+ service, having spent approximately $20 billion on original programming, according to a report from Bloomberg.
Eddy Cue, an Apple executive, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about cutting back budgets. The studio heads have reportedly indicated that the goal is to move away from being seen as the industry’s largest spender.
Apple has invested substantial amounts in various projects, including $250 million on the miniseries “Masters of Air,” which saw minimal engagement upon its release this year. Additionally, the company has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ holds only 0.2% of U.S. television viewership and receives fewer views in a month than Netflix does in just one day. The platform has also faced challenges in attracting new subscribers.
While Apple’s streaming service issues do not seem to pose a major concern for the tech giant, as streaming is not central to its business model, the era of unrestricted spending appears to be coming to an end. This shift has been indicated by Apple’s hesitance to renew shows for third seasons, as noted by Bloomberg.
Notably, Apple TV+ remains the last major streaming platform without an advertising tier. However, this could soon change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.