Apple is recognizing that its substantial investment in original content for Apple TV+ may not be yielding the desired results. The company has reportedly spent around $20 billion on shows and movies, many of which may not be familiar to viewers.
In response, Apple is looking into a revised strategy for its streaming service. According to reports, executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to find ways to cut back on spending. The leadership has expressed a desire to move away from the image of being the industry’s largest spender.
Among its notable expenditures, Apple invested $250 million in the miniseries “Masters of Air,” which was released this year but garnered minimal popularity. Additionally, over $500 million has been allocated for films directed by prominent filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive outlay, Apple TV+ holds a mere 0.2% of TV viewership in the United States, amounting to fewer views in a month than Netflix receives in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not heavily rely on streaming as a core business, the company’s excessive spending appears to be winding down. Signs of this shift include a hesitance to renew shows for third seasons, as indicated by Bloomberg’s data.
Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier. However, this may soon change following the hire of advertising executive Joseph Cady from NBCUniversal earlier this year.