Apple is reevaluating its spending on original content for Apple TV+, having spent an astonishing $20 billion on shows and films many viewers may not recognize.
Recent discussions among Apple executives, including Eddy Cue and the heads of the Apple TV+ studio, Zack Van Amburg and Jamie Erlicht, indicate a shift in strategy towards more prudent budgeting. Reports suggest that the leadership aims to change the platform’s image as the largest spender in the industry.
The company has invested heavily in productions, notably paying $250 million for the miniseries “Masters of Air,” which garnered little audience engagement upon its release this year. Additionally, over $500 million has been spent on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in growing its subscriber base.
Although these issues do not seem to alarm Apple, as streaming is not a primary focus of its business operations, signs indicate that its era of unchecked spending may be coming to an end. The company has recently shown reluctance to renew programs for third seasons, highlighting a potential shift in strategy.
Additionally, Apple TV+ remains the only significant streaming service currently without an ad-supported tier. This may soon change as the company has brought on Joseph Cady, a former NBCUniversal advertising executive, earlier this year to explore new options.