Apple is aware that it is overspending on television shows and movies that many consumers may not recognize or know about. The company is reportedly considering a new strategy for Apple TV+ after investing around $20 billion in original content.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to scale back budgets. The studio chiefs have indicated that the streamer aims to move away from its image as the industry’s largest spender.
Apple has made significant financial commitments for various projects, such as the $250 million miniseries “Masters of Air,” which was released this year but failed to gain traction. The company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial spending, Apple TV+ commands only 0.2% of television viewership in the United States, with its monthly views falling short of what Netflix achieves in just one day. The service has also had difficulties in attracting new subscribers.
Although Apple TV+ has faced challenges, these issues have not caused major concern for the tech giant, as streaming is not a primary aspect of its business operations. However, it seems that the era of unlimited spending on original content is coming to an end, which is reflected in the company’s reluctance to renew shows for third seasons.
Remarkably, Apple TV+ is currently the only major streaming service without an advertising tier, although this could change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.