Apple is becoming aware of its excessive spending on original television shows and movies that many audiences may not recognize. The tech giant is reportedly reassessing its strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg.
Senior vice president Eddy Cue has been having discussions with studio heads Zack Van Amburg and Jamie Erlicht about reconsidering budget allocations. They aim to alter the perception that Apple TV+ is the industry’s largest spender. The company has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain much attention.
Furthermore, Apple has invested over $500 million in movies directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Yet, despite these substantial expenditures, Apple TV+ has captured only 0.2% of the TV viewership market in the United States, garnering far fewer views in a month than Netflix achieves in just one day. Subscription growth has also been stagnant.
Although Apple TV+ is facing these challenges, the streaming service does not pose a major concern for the company since streaming is not integral to its core business. However, signs indicate that its era of unlimited spending may be ending, especially as the platform appears hesitant to renew shows for third seasons.
Notably, Apple TV+ is the only major streaming service that does not offer an ad-supported tier. This may soon change, following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.