Apple is recognizing its extensive spending on original TV shows and movies, many of which have gone unnoticed by viewers.
The company is reportedly reassessing its strategy for Apple TV+ after investing around $20 billion in original content. According to sources, Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht to reduce production budgets. The aim is to move away from being seen as the largest spender in the industry.
Significant financial commitments include $250 million for the miniseries “Masters of Air,” released this year but with minimal audience engagement. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such huge expenses, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, garnering fewer views in a month than Netflix does within just 24 hours. The platform is also facing challenges in increasing its subscriber base.
While Apple has not expressed major concerns about these issues—given that streaming is not a central part of its business—signs indicate a shift away from infinite spending. This is showcased by its hesitance to renew series for a third season, as per Bloomberg’s observations.
Notably, Apple TV+ is the last significant streaming platform without an advertising tier, a situation that may soon change following the appointment of Joseph Cady, an ad executive from NBCUniversal, earlier this year.