Apple is reportedly aware that it is spending excessively on television shows and movies, many of which may be unfamiliar to audiences. Following an enormous investment of $20 billion in original content, the company is exploring new strategies for its streaming service, Apple TV+, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht to reduce budgets, as the platform looks to change its image as the top spender in the industry. This shift in perspective comes on the heels of significant investments like the $250 million for the miniseries “Masters of Air,” which has seen minimal audience engagement.
Moreover, Apple has invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this extensive spending, Apple TV+ only accounts for 0.2% of television viewership in the United States, with a monthly viewership far eclipsed by Netflix’s daily figures. The service has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a central aspect of its business, its patterns of unrestricted spending appear to be coming to an end. Indicators of this shift include the reluctance to renew shows for third seasons, as reported by Bloomberg.
Apple TV+ is currently the last major streaming platform without an advertising tier, but this may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.