Apple is reassessing its substantial financial commitment to TV shows and movies, having spent around $20 billion on original content, according to a report by Bloomberg. The company has recognized that it may be investing too heavily in productions that have not gained significant audience traction.
Apple executive Eddy Cue has reportedly engaged in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about controlling production budgets more effectively. The leadership has also communicated a desire to change the platform’s image as the industry’s largest spender on content.
The company has invested significant sums in high-profile projects, such as the $250 million miniseries “Masters of Air,” which received a lukewarm response upon its release this year. Additionally, Apple has allocated more than $500 million to films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ holds only a minimal 0.2% share of TV viewership in the U.S., with its viewership numbers in a month falling short of what Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple has not expressed significant concern over the struggles of Apple TV+, as streaming is not pivotal to its overall business model, it appears that the era of unchecked spending may be coming to an end. This shift in strategy is reflected in its reluctance to renew shows for additional seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, but this may soon change following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.