Apple is aware that its expenditures on original television shows and movies, many of which are unfamiliar to audiences, have escalated significantly.
The company is contemplating a shift in strategy for Apple TV+ after reportedly investing around $20 billion in original content, according to a Bloomberg report. Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio leaders have also suggested that the streaming service aims to change its image as the largest spender in the industry.
The tech giant has made substantial financial commitments for productions, including $250 million for the miniseries “Masters of Air,” which did not perform well upon its release this year. Furthermore, Apple has invested over $500 million in films from well-known directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy investment, Apple TV+ has only captured 0.2% of television viewership in the United States, receiving fewer views in an entire month than Netflix attracts in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s challenges have not raised significant concerns for the company, as streaming does not constitute a core aspect of its business, a shift away from its unrestricted spending appears imminent. Signs of this change are reflected in its hesitation to renew shows for third seasons, as per Bloomberg’s analysis.
Notably, Apple TV+ remains the last major streaming service without an advertising tier, a status that could soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal earlier this year.