Apple is becoming aware of the high costs associated with its spending on TV shows and movies, many of which viewers may not be familiar with.
According to reports, the company is considering a shift in strategy for Apple TV+ after investing an astounding $20 billion into original content. Apple executive Eddy Cue has been in discussions with Apple TV+ studio leaders Zack Van Amburg and Jamie Erlicht about budgeting changes. The studio chiefs have indicated that the streaming service aims to move away from its image as the highest spender in the industry.
Apple has made significant financial commitments for productions, including $250 million for the miniseries “Masters of Air,” which launched this year to minimal attention. Additionally, the company has invested over $500 million on films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the vast expenditures, Apple TV+ possesses only 0.2% of TV viewership in the United States, obtaining fewer views in a month than Netflix accumulates in just one day. The platform has also faced difficulties in growing its subscriber base.
While Apple TV+’s challenges have not raised immediate concerns for the tech giant, as streaming is not central to its business model, the era of unrestricted spending appears to be coming to an end. This has already manifested in a hesitance to renew shows for third seasons, as indicated by various reports.
Notably, Apple TV+ is the last significant streaming service without an advertising-supported option. However, this is expected to change following the company’s recent hiring of ad executive Joseph Cady from NBCUniversal.