Apple is recognizing that it is overspending on television shows and movies that many viewers may not even be familiar with.
The company is reportedly considering a new strategy for Apple TV+ after investing an enormous $20 billion in original content. According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The studio heads have indicated that the streaming service aims to move away from its image as the largest spender in the industry.
Apple has invested significant amounts in various projects, including $250 million for the miniseries “Masters of Air,” which launched this year but received minimal viewer engagement. Moreover, the company has spent over $500 million acquiring films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Even with this substantial financial investment, Apple TV+ captures only 0.2% of television viewership in the United States, boasting fewer views in an entire month than Netflix achieves in just one day. The platform has also faced challenges in growing its subscriber base.
Despite these issues, Apple does not seem overly concerned as streaming is not a central part of its business model. Nevertheless, signs indicate that the era of unrestricted spending may soon come to an end, particularly as evidenced by its reluctance to renew shows for third seasons.
Apple TV+ remains the last major streaming service without a tier for advertisements, a situation likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.