Apple is recognizing that it has been overspending on original content for its streaming service, Apple TV+, which includes many shows and movies that are relatively unknown to viewers. Reports indicate that the company has invested around $20 billion in original content and is now considering a new strategy to manage these expenditures more effectively.
Apple executive Eddy Cue has held discussions with studio heads Zack Van Amburg and Jamie Erlicht to address budget management, as there are indications that the streaming service aims to distance itself from its image as the biggest spender in the industry. This follows significant financial outlays for productions, such as the $250 million spent on the miniseries “Masters of Air,” which received minimal viewer interest upon release.
Additionally, Apple has reportedly invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Nevertheless, despite this hefty investment, Apple TV+ captures only 0.2% of television viewership in the United States, with its audience numbers falling short compared to rivals like Netflix, which garners more views in 24 hours than Apple TV+ does in an entire month. The service has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not raised significant concerns within the broader tech company due to streaming not being a primary focus of its business, the era of unlimited spending appears to be coming to an end. Signs of this shift include a hesitance to renew certain shows for a third season.
Interestingly, Apple TV+ remains the last major streaming service that does not offer an ad-supported tier. This aspect may soon change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier in the year.