Apple is reportedly aware that it is excessively investing in original television shows and films, many of which are relatively unknown to audiences. According to Bloomberg, the company is reassessing its strategy for Apple TV+ after spending an astounding $20 billion on original content.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about managing production budgets more effectively. The studio heads have indicated that the platform is looking to move away from its image as the highest spender in the industry.
The tech giant has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain traction. Additionally, Apple has invested over $500 million in films from notable directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ holds just 0.2% of the U.S. TV audience and garners fewer views in a month than Netflix does in a single day. The platform has also experienced challenges in growing its subscriber base.
While Apple does not seem overly concerned about the challenges facing Apple TV+, given that streaming is not central to its business model, the era of unlimited spending appears to be ending. The company has already begun to show more restraint in renewing shows for their third seasons.
Interestingly, Apple TV+ is currently the only major streaming service without an ad-supported tier, though that may change soon with the appointment of Joseph Cady, an advertising executive from NBCUniversal.