Apple is recognizing that its spending on TV shows and movies is excessive, particularly on content that remains largely unseen by audiences.
The company is reportedly considering a new strategy for Apple TV+ after investing approximately $20 billion in original programming, as highlighted by Bloomberg. Apple executive Eddy Cue has been collaborating with studio heads Zack Van Amburg and Jamie Erlicht to discuss ways to reduce budgets. The duo is said to be indicating a desire for the streaming service to move away from its image as the largest spender in the industry.
Apple has made significant financial commitments, such as the $250 million it spent on the miniseries “Masters of Air,” which launched this year but failed to capture widespread attention. Additionally, more than $500 million has been allocated for films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn, as noted by Bloomberg.
Despite the substantial investments, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, garnering fewer monthly views than Netflix achieves in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple TV+’s struggles do not seem to alarm the tech giant, given that streaming is not its primary business focus, it appears that the era of unrestricted spending may be coming to an end. This shift is already evident in the company’s hesitance to renew programs for third seasons, according to Bloomberg data.
Remarkably, Apple TV+ remains the last major streaming platform without an advertising tier, a situation that could be on the verge of change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.