Apple is aware that it has been overspending on television shows and movies that many viewers may not even recognize.
In light of this, the company is reportedly reevaluating its strategy for Apple TV+ after investing approximately $20 billion in original content, according to Bloomberg. Senior executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They aim to alter the perception of Apple TV+ as the streaming industry’s largest spender.
The company has made significant financial commitments for various productions, including a striking $250 million for the miniseries “Masters of Air,” which garnered minimal audience engagement upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive expenditures, Apple TV+ currently holds just 0.2% of the television viewership in the US, with its monthly viewership being outperformed by Netflix in just a single day. The platform has also faced challenges in attracting new subscribers.
While Apple has not expressed major concerns about the challenges facing its streaming service—likely because streaming is not central to its primary business—it appears that the era of unrestricted spending is coming to an end. This is reflected in its hesitance to renew shows for third seasons, as shown by Bloomberg’s analysis.
Moreover, Apple TV+ is the only major streaming service that does not offer an ad-supported tier. This could change, as the company recently brought on Joseph Cady, a former advertising executive from NBCUniversal.