Apple’s Streaming Struggles: Is the Spending Era Over?

Apple is reevaluating its spending on original content for Apple TV+, having reportedly invested around $20 billion on shows and movies that largely go unnoticed. The company is now considering a new strategy following discussions between Apple executive Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht aimed at cutting budgets and shedding its image as the industry’s biggest spender.

In its pursuit of high-profile projects, Apple shelled out significant amounts, such as $250 million for the miniseries “Masters of Air,” which failed to gain traction upon release. The company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.

Despite this substantial financial commitment, Apple TV+ holds only a 0.2% share of TV viewership in the US, attracting far fewer views than Netflix obtains in just a day. The platform has also faced challenges in growing its subscriber base.

While Apple may not be too concerned about these streaming issues—given that it’s not a primary focus of its business—signs indicate that its era of unchecked spending might soon come to an end. This shift is evident in its hesitance to renew shows for third seasons. As it stands, Apple TV+ is the only major streaming service that has not introduced an ad-supported tier, a situation that may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.

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