Apple is reportedly recognizing its excessive spending on original TV shows and movies that may not resonate with audiences.
Following an investment of around $20 billion in original content for Apple TV+, executives are considering a new strategy to manage budgets more effectively. Eddy Cue, an Apple executive, has been discussing these changes with studio heads Zack Van Amburg and Jamie Erlicht, who have indicated a desire to shed the image of being the highest spender in the industry.
The tech giant has made significant financial commitments to various projects, including $250 million for the miniseries “Masters of Air,” which released this year but failed to gain much traction. Additionally, over $500 million has been allocated for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment, Apple TV+ holds a mere 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. The platform has also encountered difficulties in growing its subscriber base.
Although Apple TV+’s challenges may not be a primary concern for the company, given that streaming is not central to its business model, it appears that the era of unchecked spending could be coming to an end. This shift is already evident as the company has shown hesitation in renewing shows for additional seasons.
Currently, Apple TV+ is the only major streaming service without an advertising tier, a situation that could change soon following the hiring of Joseph Cady, a former ad executive from NBCUniversal.