Apple is reevaluating its approach to TV shows and movies as it recognizes it has overspent on original content, amounting to around $20 billion, according to Bloomberg. Executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets and improving the platform’s image as a major spender in the industry.
The company has invested heavily in projects, such as the $250 million miniseries “Masters of Air,” which garnered minimal audience interest. Furthermore, it reportedly allocated over $500 million for films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ holds only a 0.2% share of US TV viewership, with viewership figures far lower than those of Netflix, which can surpass Apple TV+ in a single day. The platform has faced challenges in attracting new subscribers.
However, these issues have not raised significant concern within Apple, as streaming services are not central to its business strategy. Nonetheless, the trend of unrestricted spending appears to be shifting, evidenced by the company’s cautious approach to renewing shows for third seasons.
Apple TV+ stands out as the only major streaming service that has not yet introduced an ad-supported tier, a situation that may change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.