Apple recognizes that it has been overspending on original television shows and movies, many of which are relatively unknown to audiences.
According to reports, the company is considering a new strategy for its streaming service, Apple TV+, after investing around $20 billion in original content. Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss ways to cut back on budgets and improve the streamer’s image as an excessive spender.
This massive investment includes significant sums, such as $250 million for the miniseries “Masters of Air,” which launched this year but has not garnered much attention. Additionally, Apple has spent over $500 million on films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive financial commitment, Apple TV+ only holds a mere 0.2% of television viewership in the United States. In fact, the service attracts fewer viewers in an entire month than Netflix does in just one day, and it has faced challenges in growing its subscriber base.
Although Apple TV+ appears to be struggling, the tech giant does not seem overly concerned, as streaming is not a primary revenue driver for the company. However, evidence suggests that the era of unrestricted spending may be coming to an end, highlighted by the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last of the major streaming platforms that does not offer an ad-supported tier, although this could change following the hiring of Joseph Cady, an advertising executive who joined from NBCUniversal earlier this year.