Apple has recognized that it is investing excessively in television shows and movies that many viewers may not be familiar with.
The company is reportedly reassessing its strategy for Apple TV+ after spending an astonishing $20 billion on original content, according to Bloomberg. Executives, including Eddy Cue, have been engaging with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The executives are reportedly aiming to move away from Apple TV+’s reputation as the industry’s highest spender.
Apple has made significant financial commitments, such as investing $250 million in this year’s miniseries “Masters of Air,” which failed to gain traction, and over $500 million on films by prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ holds only 0.2% of the US television viewership, achieving fewer views in a month than Netflix garners in just a single day. The service has also faced challenges in increasing its subscriber base.
While the streaming issues do not seem to weigh heavily on Apple since streaming is not central to its business model, the era of unchecked spending appears to be coming to an end. This shift has been hinted at by the company’s hesitance to renew shows for third seasons, as highlighted by Bloomberg’s findings.
Notably, Apple TV+ is the only major streaming service without an advertising tier, but this may soon change with the recruitment of advertising executive Joseph Cady from NBCUniversal earlier this year.