Apple is reportedly aware of its excessive spending on television shows and movies, many of which are not widely recognized. The company has invested around $20 billion in original content for its streaming service, Apple TV+, and is now considering a different strategy.
Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets. There are indications that Apple TV+ aims to move away from its image as the industry’s largest spender.
The tech giant has poured substantial resources into projects, such as the $250 million investment for the miniseries “Masters of Air,” which underperformed upon release. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy financial commitment, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, attracting significantly fewer viewers in a month than Netflix does in just one day. The streaming service has also had difficulty growing its subscriber base.
While the challenges facing Apple TV+ don’t seem to be a major concern for the company, which focuses mainly on other business areas, it appears that the era of unrestricted spending may be coming to an end. This shift has been indicated by the company’s hesitance to renew shows for additional seasons.
Currently, Apple TV+ remains the only major streaming platform that does not offer an ad-supported tier. However, this may change soon, especially following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.