Apple is recognizing that its significant investment in television shows and movies may not be paying off, as many of the productions are relatively unknown to audiences. The company has reportedly spent around $20 billion on original content for its streaming service, Apple TV+, and is now looking into revising its strategy.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about managing production budgets more effectively. The studio chiefs have indicated a desire to change the service’s reputation as the largest spender in the industry.
Apple’s spending has included notable projects such as the $250 million miniseries “Masters of Air,” which did not garner a significant audience upon release. Furthermore, the company has invested more than $500 million in films by well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the hefty spending, Apple TV+ accounts for just 0.2% of television viewership in the United States, a stark contrast to Netflix, which can attract more viewers in a single day than Apple TV+ sees in an entire month. The streaming service has also faced challenges in growing its subscriber base.
While Apple has not expressed concern over the performance of Apple TV+, as streaming is not central to its overall business model, it appears to be moving away from unlimited spending. This trend is evident in its hesitance to renew shows for third seasons, as noted in Bloomberg’s report.
Additionally, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may change soon. Earlier this year, the company hired Joseph Cady, an advertising executive from NBCUniversal, which suggests a shift towards integrating ads into its streaming strategy.