Apple is acknowledging that it is overspending on its original TV shows and movies, many of which have not gained significant viewer recognition. According to a report by Bloomberg, the company is considering a shift in its strategy for Apple TV+ after investing approximately $20 billion in content.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about managing and reducing production budgets. The studio leaders have reportedly expressed a desire for the streaming service to move away from its image as the most extravagant spender in the industry.
The tech giant has made substantial investments in projects, such as the $250 million it allocated for the miniseries “Masters of Air,” which premiered this year with little impact. Furthermore, Apple has spent over $500 million securing films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenses, Apple TV+ holds only 0.2% of television viewership in the U.S., with its monthly viewer count dwarfed by Netflix’s figures, which it can achieve within just 24 hours. Subscriber growth has also been a challenge for the platform.
While Apple’s streaming issues do not pose a major concern for the company, since it does not rely on this market as a primary business avenue, the era of unrestricted spending appears to be coming to an end. This shift has already been indicated by its hesitation to renew shows for third seasons, according to data from Bloomberg.
Notably, Apple TV+ remains the last major streaming service that does not offer an ad-supported tier, although this could soon change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.