Apple is aware that it is investing excessively in TV shows and movies that many people are unlikely to recognize or remember. The company is seeking a new strategy for its streaming service, Apple TV+, after reportedly spending around $20 billion on original content, according to Bloomberg.
Executive Eddy Cue has been discussing budget cuts with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht, as they aim to alter the perception of the platform as the largest spender in the industry. For instance, Apple made a significant investment of $250 million for the miniseries “Masters of Air,” which underperformed upon release.
Furthermore, the company has allocated over $500 million for films from high-profile directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Nevertheless, despite these substantial investments, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting fewer views in a month than Netflix garners in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple has not expressed significant concern over these streaming challenges, as it does not see streaming as central to its business, it appears to be moving away from its strategy of unlimited content spending. This is reflected in its reluctance to renew certain shows for third seasons, as reported by Bloomberg.
Moreover, Apple TV+ stands out as the only major streaming service without an advertising tier, a situation that may be changing soon following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.