Apple is reassessing its spending on television shows and movies, acknowledging that it has invested heavily in content that many viewers have not experienced or even heard of.
According to a report by Bloomberg, the company is exploring a new strategy for Apple TV+ after investing approximately $20 billion in original content. Apple executive Eddy Cue has been engaging in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht to reduce budgets, as they aim to change the platform’s perception as the industry’s largest spender.
Apple has made significant financial commitments to productions, such as the $250 million spent on the miniseries “Masters of Air,” which was released this year but failed to gain notable traction. The platform has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these enormous expenditures, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, achieving fewer views in a month than Netflix garners in just 24 hours. The service has faced challenges in subscriber growth.
While Apple’s streaming endeavors have not been a primary concern for the company—given that streaming is not foundational to its overall business—the trend of unrestricted spending may be coming to an end. This shift is evidenced by the platform’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the company’s recent hiring of Joseph Cady, a former ad executive from NBCUniversal.