Apple is aware that it has been excessively spending on TV shows and movies that many consumers are not familiar with. According to reports, the company is reconsidering its strategy for Apple TV+ after investing a staggering $20 billion in original content.
Insider sources revealed that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding tightening budgets. The duo has allegedly mentioned a desire to move away from being known as the industry’s largest spender on content.
Apple has made substantial financial commitments for a range of productions, such as the $250 million investment in the miniseries “Masters of Air,” which launched this year but did not perform well. Additionally, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ holds only 0.2% of the TV viewership in the United States, attracting fewer viewers in a month than Netflix garners in just a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s challenges have not raised significant concerns within the broader company, because streaming isn’t a primary focus, it appears that the era of unrestricted spending is coming to an end. This shift is reflected in the company’s hesitance to renew shows for their third seasons.
Additionally, Apple TV+ remains the only major streaming service without an ad-supported tier. This may soon change, particularly after the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.