Apple has acknowledged that it is overspending on television shows and movies that many viewers may not be familiar with.
The company is considering a revised strategy for its streaming service, Apple TV+, after reportedly investing a staggering $20 billion in original content, according to Bloomberg. The report details that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. Both Van Amburg and Erlicht have conveyed a desire for the platform to move away from its image as the industry’s largest spender.
Apple’s spending has been substantial, including $250 million on the miniseries “Masters of the Air,” which had minimal audience engagement upon release this year. Additionally, the company has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant investments, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix garners in a single day. The platform has also faced challenges in growing its subscriber base.
While Apple does not primarily rely on its streaming service for revenue, the unrestricted spending on content may soon come to an end. The company’s recent hesitation to renew shows for third seasons suggests a shift in approach. Currently, Apple TV+ remains the only major streaming service without an advertising tier, although that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.