Apple’s Streaming Dilemma: Is the Golden Age of Overspending Over?

Apple has acknowledged that it is overspending on original television shows and movies that many viewers may not recognize. According to reports, the company is considering a new strategy for its streaming platform, Apple TV+, after investing an astonishing $20 billion in original content.

Apple executive Eddy Cue has been consulting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts. The duo has been expressing a desire for the platform to improve its image, moving away from being perceived as the industry’s biggest spender.

The tech giant has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which failed to generate substantial viewer interest upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.

Despite its massive expenditure, Apple TV+ claims a mere 0.2% of total TV viewership in the United States, garnering fewer views per month than Netflix achieves in just one day. The platform has also encountered challenges in growing its subscriber base.

While Apple does not seem overly concerned about the difficulties facing Apple TV+, given that streaming is not central to its business model, the era of limitless spending appears to be coming to an end. This is reinforced by the company’s hesitation to renew shows for their third seasons, according to Bloomberg.

Notably, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier, though this may soon change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.

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