Apple is rethinking its approach to original content on Apple TV+ after spending an astonishing $20 billion on productions that many viewers may not be familiar with. According to reports, Apple executive Eddy Cue has been holding discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding the need to control budgets more strictly.
The streaming service aims to shed the perception of being the industry’s largest spender. Apple has invested considerable funds in various productions, including a hefty $250 million on the miniseries “Masters of Air,” which was released this year but did not gain significant traction.
Additionally, Apple has poured over $500 million into films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this massive financial commitment, Apple TV+ accounts for only 0.2% of television viewership in the United States, attracting fewer viewers in one month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple’s streaming service challenges may not be affecting the tech giant considerably, since streaming is not a primary focus of its business model, the era of unlimited expenditure may soon be coming to an end. This shift is evident in the company’s hesitation to renew shows for third seasons.
Currently, Apple TV+ is the last significant streaming service without an advertising tier, but this could change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.