Apple is reportedly aware that it has been investing excessively in TV shows and films that may not resonate with audiences. The tech giant has spent an estimated $20 billion on original content for its streaming service, Apple TV+, and is now considering a strategic shift. According to sources, Apple executive Eddy Cue has held discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The goal is to alter the platform’s image as the largest spender in the industry.
Apple has made significant financial commitments to various projects, including $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon release. Additionally, the company has invested over $500 million on films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ has captured only 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in a single day. The service has also faced challenges in boosting its subscriber base.
While streaming is not a primary focus of Apple’s business, the company appears to be shifting away from its previously unrestrained spending approach. This change is becoming evident as Apple remains hesitant to renew shows for third seasons. Moreover, Apple TV+ currently stands out as the last major streaming platform without an advertising tier, a status that could soon change, especially after the company hired Joseph Cady, a former NBCUniversal advertising executive, earlier this year.