Apple is recognizing that it has been overspending on TV shows and movies that often go unnoticed by the public. The company has reportedly invested around $20 billion in original content for its streaming service, Apple TV+, and is now reconsidering its strategy.
According to Bloomberg, Apple executive Eddy Cue has been discussing budget management with studio heads Zack Van Amburg and Jamie Erlicht. They are reportedly aiming to change the service’s image as the largest spender in the industry.
Apple has made significant investments in high-profile projects, including a $250 million allocation for the miniseries “Masters of Air,” which received minimal attention upon its release. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial commitments, Apple TV+ holds only 0.2% of TV viewership in the U.S., attracting fewer viewers in a month than Netflix does in just one day. The service has also faced difficulties in boosting its subscriber numbers.
Although Apple TV+’s challenges haven’t caused major concern for the tech giant, as streaming isn’t central to its core business, it appears that unrestricted spending may be coming to an end. This shift is reflected in the company’s reluctance to renew shows for additional seasons, as highlighted by Bloomberg’s findings.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, but this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.