Apple is aware that its investment in original TV shows and movies has been excessive, targeting a staggering $20 billion on content that many viewers may not recognize. The company is reportedly reassessing its strategy for Apple TV+, as executives Eddy Cue, Zack Van Amburg, and Jamie Erlicht discuss the need to cut back on budgets.
Bloomberg has highlighted that Apple spent significant amounts on projects such as the miniseries “Masters of Air,” which cost $250 million and had minimal engagement upon its release this year. Additionally, the company has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these huge expenditures, Apple TV+ has only captured 0.2% of TV viewership in the US, struggling to accumulate subscribers and attracting fewer views in a month than Netflix achieves in just one day. Although Apple does not prioritize streaming as a core business, the trend of unrestricted spending appears to be coming to an end, with indications that the company is hesitant to renew shows for additional seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this may soon change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.