Apple is aware that its spending on television shows and movies has been excessive, particularly for content that many audiences have neither seen nor even heard of.
According to Bloomberg, the company is considering a new strategy for its Apple TV+ service after investing an astonishing $20 billion in original content. Apple executive Eddy Cue has reportedly been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about managing budgetary constraints. The studio heads have indicated that the streaming service aims to move away from its image as the largest spender in the industry.
Apple has invested significant amounts in projects such as the miniseries “Masters of Air,” which cost $250 million and had a lackluster reception upon release this year. Furthermore, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive financial outlay, Apple TV+ holds a mere 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix achieves within just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple appears unconcerned about the struggles of Apple TV+, as streaming is not a fundamental part of its business model, the era of unrestricted spending seems to be coming to an end. This shift is likely indicated by its hesitance to renew shows for a third season, based on Bloomberg’s analysis.
Notably, Apple TV+ is the only major streaming service that does not have an advertising tier. However, this may soon change following the appointment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.