Apple is acknowledging that it is spending excessively on original television shows and movies, many of which have gone unnoticed by audiences.
The company is considering a fresh strategy for Apple TV+ after reportedly investing around $20 billion in original content, according to Bloomberg. Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about controlling costs. The studio leaders have indicated that the streamer aims to move away from being perceived as the sector’s largest spender.
Apple has allocated significant funds to various projects, including $250 million for the miniseries “Masters of Air,” which debuted this year with minimal impact. Moreover, it has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ accounts for a mere 0.2% of television viewership in the United States, garnering fewer viewers in a month than Netflix captures in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s issues do not appear to be a major concern for the tech company—given that streaming is not a central aspect of its business—there are indications that its era of unrestricted spending may soon come to an end. This is reflected in the company’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Additionally, Apple TV+ stands out as the only major streaming service without an ad-supported option; however, this might change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.