Apple acknowledges that it is overspending on original TV shows and movies, many of which have gone unnoticed by audiences.
The company is considering a new strategy for its streaming service, Apple TV+, after reportedly investing around $20 billion in original content. According to reports, executive Eddy Cue has been collaborating with studio leaders Zack Van Amburg and Jamie Erlicht to cut back on production budgets. They have communicated the desire for the platform to dispel its image as the highest spender in the industry.
Apple’s spending has included significant amounts for productions like the $250 million miniseries “Masters of Air,” which premiered this year but failed to gain traction. Additionally, over $500 million has been allocated to films by high-profile directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this enormous investment, Apple TV+ holds just 0.2% of TV viewership in the US, receiving fewer views in a month than Netflix obtains in just one day. The platform has also faced challenges in boosting its subscriber base.
While Apple TV+’s struggles have not raised alarms within the tech giant, as streaming is not part of its primary business focus, the era of unrestricted spending appears to be coming to an end. This is illustrated by the company’s hesitation to renew shows for additional seasons. Furthermore, Apple TV+ remains the last major streaming service without an advertising tier, a situation likely to change following the hiring of former NBCUniversal ad executive Joseph Cady earlier this year.