Apple is reportedly aware of its excessive spending on TV shows and movies that many viewers may not recognize, having invested approximately $20 billion in original content. Recent discussions among executives suggest that Apple is considering a shift in strategy for its streaming service, Apple TV+.
According to Bloomberg, Apple executive Eddy Cue has been in talks with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The focus appears to be on changing the platform’s image as the industry’s largest spender.
Significant financial commitments have included $250 million for the miniseries “Masters of Air,” which received a tepid response upon its release this year. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these grand expenditures, Apple TV+ occupies a mere 0.2% of the TV viewership market in the U.S., garnering fewer views in a month than Netflix receives in just one day. The service has also faced challenges in expanding its subscriber base.
While Apple does not prioritize streaming in its core business operations, the company’s pattern of unchecked spending appears to be coming to an end, as evidenced by its hesitance to renew shows for third seasons, indicating a shift in their approach.
Apple TV+ currently remains the only major streaming platform that does not offer an ad-supported tier, but this could change soon, following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.