Apple is reportedly aware that it is overspending on original television shows and films, many of which have gone largely unnoticed by audiences.
The tech giant has invested around $20 billion in content for Apple TV+, and following this significant expenditure, executives are seeking to reassess their strategies. According to Bloomberg, Eddy Cue, an Apple executive, has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about controlling budgets and shifting away from the platform’s image as the industry’s highest spender.
This spending spree has included substantial financial commitments, such as $250 million for the miniseries “Masters of Air,” released this year but failing to gain traction. Additionally, Apple has poured over $500 million into films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive investment, Apple TV+ commands only 0.2% of television viewership in the U.S., receiving fewer monthly views than Netflix typically garners in just 24 hours. The service has also experienced challenges in growing its subscriber base.
While Apple does not consider streaming a core component of its business, the company appears to be moving towards a more cautious approach regarding future content spending. Indications of this shift include a reluctance to renew series for third seasons based on Bloomberg’s analysis.
Currently, Apple TV+ is the last major streaming service that does not offer an advertising tier, a situation that may change soon, especially after the recent hiring of Joseph Cady, a former executive from NBCUniversal.