Apple is becoming aware of its excessive spending on original television shows and movies that many viewers may not recognize or have heard of. The company has reportedly invested around $20 billion on content for its Apple TV+ service, prompting reconsideration of its financial strategy.
According to reports, Apple’s Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, about tightening budgets and altering the platform’s image as the highest spender in the industry.
The company has made significant financial commitments, such as the $250 million spent on the miniseries “Masters of Air,” which underperformed upon release. Furthermore, it has invested over $500 million in films directed by high-profile filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ has captured only 0.2% of television viewership in the US, attracting fewer views in a month than Netflix achieves in just a day. Additionally, gaining new subscribers has proven challenging.
Although the streaming service has faced obstacles, it hasn’t caused Apple much concern, as streaming is not a primary focus of its business model. Nevertheless, signs indicate that Apple is moving away from its boundless expenditure, exemplified by its hesitation to renew shows for a third season.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation expected to change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.