Apple recognizes that it is investing excessively in TV shows and movies that are largely unknown to audiences.
According to reports, the company is considering a new strategy for Apple TV+, having spent an estimated $20 billion on original content. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. They’ve indicated that the streaming service aims to change its image as the industry’s biggest spender.
Apple’s hefty expenditures have included $250 million for the miniseries “Masters of Air,” which received little attention upon its release this year. Additionally, the company has invested over $500 million in films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ commands only 0.2% of TV viewership in the United States, with its monthly viewership falling short of Netflix’s daily figures. The service has faced challenges in growing its subscriber base.
While Apple’s streaming venture isn’t central to its business model and doesn’t seem to be causing major concern for the tech giant, its unrestricted spending appears to be coming to an end. This shift is already evident as the company has been hesitant to renew shows for third seasons, as highlighted by recent Bloomberg data.
Notably, Apple TV+ is the last major streaming platform without an ad-supported option. However, this may change soon, following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.