Apple is acknowledging that it has been investing excessively in TV shows and movies that many viewers are unfamiliar with. The company is reportedly reassessing its strategy for Apple TV+ after spending approximately $20 billion on original content. According to sources, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio chiefs have expressed a desire to change the perception of Apple TV+ as the largest spender in the industry.
The hefty investments include $250 million for the miniseries “Masters of Air,” which received little audience engagement upon release. Apple has also allocated over $500 million for films featuring renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ commands only a 0.2% share of TV viewership in the United States, with its monthly views being less than what Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple’s difficulties with Apple TV+ do not seem to be a major concern for the larger tech company—given that streaming is not a primary focus for its business—the era of unchecked spending appears to be coming to an end. This shift is reflected in the company’s hesitation to renew shows for third seasons, as reported by Bloomberg.
Additionally, Apple TV+ is the last major streaming platform without an advertising tier, a situation that may soon change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.