Apple is recognizing that it has been investing excessively in TV shows and movies, many of which go unnoticed by audiences.
Amidst one of its most volatile weeks, Nvidia stock remains in the spotlight. Meanwhile, reports indicate that Apple is reassessing its strategy for Apple TV+ after spending an estimated $20 billion on original content.
According to sources, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about curtailing budgets. They have conveyed that the platform aims to move away from its image as the biggest spender in the industry.
Apple’s financial commitments include substantial sums, such as $250 million for the miniseries “Masters of Air,” which struggled to gain a significant audience upon its release. The company has also invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ holds just 0.2% of the TV viewership market in the United States, garnering fewer views in a month than Netflix does in a day. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s challenges have not raised alarm bells within the tech giant—since streaming is not central to its business model—there are signs that the era of unrestricted spending may be coming to an end. This is further evidenced by a hesitance to renew shows for third seasons, as noted in recent data.
Notably, Apple TV+ is the only major streaming service that does not offer an ad-supported tier, a situation that may change following the company’s recruitment of ad executive Joseph Cady from NBCUniversal earlier this year.