Apple is reportedly aware of its excessive spending on TV shows and movies, many of which have gone unnoticed by the public. According to Bloomberg, the tech giant has invested an astounding $20 billion on original content for Apple TV+ and is now rethinking its strategy.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about limiting budgets and shedding the image of being the industry’s biggest spender. The company has invested significant amounts in productions, including $250 million for the miniseries “Masters of Air,” which failed to gain traction upon its release this year.
Furthermore, Apple has allocated over $500 million for films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this considerable financial outlay, Apple TV+ commands only 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix achieves in just a day. The platform has also faced challenges in growing its subscriber base.
While Apple does not appear overly concerned about the setbacks with Apple TV+, given that streaming is not a cornerstone of its business, it is indicating a shift away from unrestricted spending. This is apparent in its hesitance to renew shows for third seasons, as reported by Bloomberg.
Apple TV+ remains the only major streaming service without an advertising tier, but this may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.