Apple is reportedly aware that it is overspending on original TV shows and films that many viewers may not recognize. The company is currently reevaluating its strategy for Apple TV+ after investing approximately $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to cut back on budgets. Van Amburg and Erlicht have indicated that the platform aims to move away from its image as the largest spender in the industry.
Significant investments include $250 million on the miniseries “Masters of Air,” which failed to gain much traction upon release. Additionally, Apple has invested over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ holds only 0.2% of TV viewership in the US, garnering far fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in boosting its subscriber base.
Although Apple TV+’s viewing issues have not raised alarms within the tech giant, as streaming is not a primary aspect of its business, the company’s era of unlimited spending appears to be coming to an end. This shift is reflected in its hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the last major streaming service without an advertising tier, but this may soon change after the recent hiring of advertising executive Joseph Cady from NBCUniversal.