Apple is acknowledging that it has been spending excessively on television shows and movies that are largely obscure. The company is exploring adjustments to its Apple TV+ strategy after reportedly investing around $20 billion in original content.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio leaders, Zack Van Amburg and Jamie Erlicht, about reducing expenditures. The studio heads are said to have indicated that the streaming service aims to change its image as the biggest spender in the industry.
Apple has made significant financial commitments towards projects, including a staggering $250 million for the miniseries “Masters of Air,” which premiered this year with minimal success. Furthermore, the company has spent over $500 million on films featuring renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive investments, Apple TV+ has managed to capture only 0.2% of U.S. TV viewership, garnering fewer views in a month than Netflix achieves in a single day. Additionally, the service has found it challenging to grow its subscriber base.
While Apple does not seem particularly troubled by the setbacks at Apple TV+, as streaming is not a primary focus of its business, it appears that the era of unchecked spending may be coming to an end. The company has already hinted at this change by being hesitant to renew certain shows for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an advertising option. However, this may soon change, as the company has recently brought on Joseph Cady, a former NBCUniversal ad executive, to help address this gap.