Apple is reportedly aware that it is overspending on original TV shows and movies, many of which remain largely unnoticed by audiences.
The tech giant has allocated approximately $20 billion for content for its streaming service, Apple TV+, and is now considering a new strategy to manage these costs better, according to Bloomberg. Executive Eddy Cue has been engaging with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, regarding the need to reduce spending. There are indications that the platform aims to move away from its reputation as the industry’s biggest spender.
Among the significant investments Apple has made is $250 million for the miniseries “Masters of Air,” which premiered this year but failed to generate significant interest. Additionally, the company has invested over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive investment, Apple TV+ holds only 0.2% of U.S. television viewership, lagging significantly behind competitors like Netflix, which garners more views within a 24-hour period than Apple TV+ achieves in an entire month. The service has struggled with subscriber growth as well.
Although these challenges have not raised major concerns for Apple—given that streaming is not their primary focus—the company appears to be moving away from its unlimited spending model. This shift is reflected in its hesitation to renew series for third seasons, as reported by Bloomberg data.
Furthermore, Apple TV+ is currently the only major streaming service without an advertising tier, although this could change soon following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.