Apple is reportedly aware of its excessive spending on television shows and movies, many of which are unfamiliar to most viewers. According to Bloomberg, the company is reevaluating its approach to Apple TV+ after investing an astonishing $20 billion in original content.
Apple executive Eddy Cue has been engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing production budgets. The studio chiefs have indicated that the streaming service aims to shed its image as the largest spender in the industry.
The tech giant has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which debuted this year without much impact. Additionally, Apple has allocated over $500 million for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable investment, Apple TV+ commands only 0.2% of television viewership in the United States, receiving fewer views in an entire month than Netflix does in just 24 hours. The platform has also faced challenges in boosting subscriber numbers.
Although Apple TV+’s challenges have not caused much concern for the broader company, as streaming is not a primary focus of its business, the era of unrestricted spending appears to be coming to an end. This shift is evident as the company has shown hesitance in renewing shows for third seasons, according to Bloomberg.
Notably, Apple TV+ remains the last major streaming platform without an advertising tier, a situation likely to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.