Apple acknowledges that it has invested heavily in television shows and movies, many of which remain obscure to the public.
The tech giant is reportedly considering a shift in strategy for its Apple TV+ platform after spending an astounding $20 billion on original content, according to Bloomberg.
Insider information indicates that Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss reducing budgets. The pair has communicated that the platform aims to move away from its image as the industry’s largest spender.
Among its significant expenditures, Apple shelled out $250 million for the miniseries “Masters of Air,” which garnered minimal interest upon release this year. In addition, the company has invested over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive spending, Apple TV+ commands a mere 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix averages in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple does not seem overly concerned about these streaming challenges, as it is not a primary focus of its business, the era of unlimited spending may soon come to a close. Signs of this shift include a hesitance to renew shows for third seasons, as indicated by Bloomberg’s analysis.
Notably, Apple TV+ is currently the only major streaming service that lacks an ad-supported tier, a situation that may soon change following the recent hire of Joseph Cady, an advertising executive previously associated with NBCUniversal.