Apple has recognized that it is overspending on TV shows and movies that many consumers may not be familiar with. The company has reportedly invested a staggering $20 billion in original content for its Apple TV+ platform, prompting a reassessment of its spending strategy.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets. There is a clear intention to change the perception of Apple TV+ as the largest spender in the streaming industry.
Significant funds have been allocated to various projects, including $250 million for the miniseries “Masters of Air,” which received minimal viewer engagement following its release this year. Additionally, over $500 million has been spent on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ commands only 0.2% of TV viewership in the United States, trailing far behind rivals such as Netflix, which garners more views in a single day than Apple achieves in a month. The platform has also faced challenges in growing its subscriber base.
While the streaming sector is not central to Apple’s overall business strategy, the company appears to be signaling a shift away from unlimited spending. This trend is evident in its hesitance to renew shows for third seasons, according to data from Bloomberg.
Notably, Apple TV+ is currently the only major streaming service that does not offer an ad-supported tier, a situation likely to change soon following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier in the year.