Apple is reportedly aware that its spending on original TV shows and movies has been excessive, particularly on content that many viewers are unfamiliar with. According to Bloomberg, the company is considering a revised strategy for Apple TV+ after investing around $20 billion on original programming.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about the need to tighten budgets. The pair has been expressing that the streaming service aims to move away from its image as the industry’s largest spender.
The company has invested substantial amounts in specific projects, such as the $250 million miniseries “Masters of Air,” which had minimal viewer engagement upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable expenditure, Apple TV+ holds a mere 0.2% share of U.S. TV viewership, with its monthly viewing figures falling short of what Netflix achieves in just one day. The platform has also faced challenges in attracting new subscribers.
While the issues facing Apple TV+ do not pose a significant concern for the broader tech company, which does not prioritize streaming as a core business, the era of unrestricted budget spending appears to be coming to an end. Evidence of this shift can be seen in the company’s hesitance to renew shows for third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, although this is expected to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.