Apple is reportedly reassessing its spending strategy for TV shows and movies amid concerns over its investment in original content. The tech giant has invested approximately $20 billion in this area, but much of it has not resulted in significant viewership.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets more effectively. The goal appears to be to move away from being perceived as the industry’s largest spender.
The company has invested heavily in production, including $250 million for the miniseries “Masters of Air,” which did not gain much attention. Additionally, over $500 million has been spent on films by noted directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ holds a mere 0.2% of TV viewership in the United States and garners fewer views in a month than Netflix does in a single day. Subscriber growth has also been a challenge for the platform.
Although Apple does not rely primarily on streaming for its revenue, signs indicate that its days of unlimited spending may be coming to an end. The company has been hesitant to renew several shows for third seasons, according to Bloomberg’s analysis.
Furthermore, Apple TV+ is currently the only major streaming platform without an ad-supported tier. However, this could soon change, as the company recently brought on Joseph Cady, a former ad executive from NBCUniversal.