Apple is aware that it has been overspending on television shows and movies that many consumers may not recognize or have even heard of. The company is reportedly reevaluating its strategy for Apple TV+, having invested an astonishing $20 billion on original content, according to Bloomberg.
Sources indicate that Eddy Cue, an executive at Apple, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. The messaging from these studio leaders suggests that the streaming service aims to move away from its image as the largest spender in the industry.
Among its significant expenditures, Apple allocated $250 million for the miniseries “Masters of Air,” which premiered this year but received minimal audience traction. Additionally, the company has invested over $500 million in films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive financial outlay, Apple TV+ captures a mere 0.2% of television viewership in the United States. In comparison, its monthly viewership falls short of the numbers Netflix generates in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple may not be overly concerned about these challenges, given that streaming is not a primary focus of its business model, indications are that the era of unrestricted spending is coming to an end. This shift is reflected in the company’s hesitation to renew shows for third seasons, as reported by Bloomberg data.
Notably, Apple TV+ stands out as the only major streaming service without an advertising tier. However, this may change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.