Apple is aware that its spending on TV shows and movies may be excessive, potentially on content that many viewers are unfamiliar with. The company is currently reconsidering its strategy for Apple TV+ after investing a staggering $20 billion in original programming.
Reports indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They are looking to reshape the platform’s image, as Apple TV+ has become known as the largest spender in the industry.
Significant financial commitments have included $250 million for the miniseries “Masters of Air,” released this year but failing to gain much traction. Additionally, Apple has invested over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours, and it has had difficulty growing its subscriber base.
While Apple TV+’s challenges don’t appear to be a major concern for the broader tech company—given that streaming isn’t central to its business model—the trend of its unrestricted spending may soon be coming to an end. This intention is reflected in its hesitance to renew several shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation poised to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.