Apple is aware that it has been overspending on television shows and films that many consumers might not recognize or even know about. The company is reportedly evaluating its approach to Apple TV+ after investing a staggering $20 billion in original content.
According to recent reports, Apple executive Eddy Cue has engaged in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about scaling back production budgets. These executives have indicated that the platform aims to move away from its image as the industry’s largest spender.
Apple has made significant financial commitments for various productions, including $250 million for the miniseries “Masters of Air,” which premiered this year but received little attention. The company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite their substantial investments, Apple TV+ holds only 0.2% of the television viewership market in the U.S., attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in boosting its subscriber base.
Although Apple does not seem overly concerned about the challenges facing Apple TV+, given that streaming is not a primary part of its business model, the trend of unlimited spending appears to be on the decline. This change has already been hinted at by the company’s reluctance to renew certain shows for third seasons.
Currently, Apple TV+ stands out as the only major streaming platform without an advertising tier, a situation poised to change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.