Apple is recognizing that its expenditures on television shows and films may be excessively high, particularly for content that has not gained much public attention.
Bloomberg reports that the company is considering a shift in strategy for its Apple TV+ service after investing approximately $20 billion into original content. Apple executive Eddy Cue has been in discussions with the studio heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, regarding the need to manage budgets more effectively. The pair has been communicating a desire to change the perception of the streaming service as the industry’s top spender.
Among its costly investments, Apple spent $250 million on the miniseries “Masters of Air,” which saw minimal viewership upon release. Additionally, the platform has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant financial commitments, Apple TV+ holds a mere 0.2% share of television viewership in the United States, with its monthly audience being less than what Netflix garners in just a single day. The service has also faced challenges in attracting new subscribers.
Although Apple does not emphasize streaming as a core component of its business, it appears to be curbing its unrestricted spending habits. This change is evident in its hesitance to renew shows for third seasons, as indicated by Bloomberg data.
Apple TV+ remains unique among major streaming platforms, as it does not offer an ad-supported tier. However, this may soon change, particularly following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.