Apple is reassessing its spending on original content for Apple TV+, acknowledging that it has invested excessively in shows and movies that have flown under the radar. The company reportedly spent around $20 billion on content, and executives are now strategizing ways to control these budgets.
Eddy Cue, an Apple executive, has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, to shift the streaming service’s image away from being recognized as the highest spender in the industry. Apple has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which premiered this year but saw minimal interest.
According to reports, the platform has also invested over $500 million in feature films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite these substantial investments, Apple TV+ captures only 0.2% of television viewership in the United States, and its monthly viewership numbers are dwarfed by Netflix’s 24-hour figures. The service has also struggled to grow its subscriber base.
Nevertheless, Apple’s streaming ambitions seem less critical to its overall business model, which may explain its relaxed approach to subscriber growth and content strategy. However, the trend of unrestricted spending seems to be coming to an end, as evidenced by Apple’s cautiousness in renewing series for a third season.
Additionally, Apple TV+ is currently the only major streaming service without an ad-supported tier, a situation likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.