Apple is aware that it has been investing excessively in television shows and films that are largely unfamiliar to viewers.
The tech giant is reportedly reassessing its strategy for Apple TV+ after pouring an astonishing $20 billion into original content. According to Bloomberg, Apple executive Eddy Cue has been discussing budget constraints with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht. The studio leaders have indicated that the streaming service aims to distance itself from its image as the industry’s largest spender.
The company has made significant financial commitments for projects such as the $250 million miniseries “Masters of Air,” which debuted this year with disappointing results. Additionally, Apple has allocated over $500 million for films directed by renowned filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such monumental expenditures, Apple TV+ holds a mere 0.2% of television viewership in the U.S., receiving fewer monthly views than Netflix attracts in just one day. The platform has also faced challenges in bolstering its subscriber count.
While the streaming service’s struggles may not be a major concern for Apple, given that streaming is not a core part of its business model, the era of unrestricted spending appears to be coming to an end. This shift is reflected in the company’s hesitation to renew shows for a third season, as noted in Bloomberg’s findings.
Moreover, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.