Apple is realizing that its spending on original TV shows and movies has been excessive, particularly for content that remains largely unseen by the public.
The tech giant is reportedly reassessing its strategy for Apple TV+ following a staggering investment of $20 billion in original content, according to Bloomberg. Executive Eddy Cue has been engaged in discussions with Apple TV+ studio leaders Zack Van Amburg and Jamie Erlicht about reducing budgets and changing the platform’s image as the most lavish spender in the industry.
Apple’s financial outlay for projects has been significant, such as the $250 million spent on the miniseries “Masters of Air,” which debuted this year but failed to gain substantial attention. The company has also invested over $500 million in films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive investments, Apple TV+ holds only 0.2% of the television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The service has faced challenges in growing its subscriber base.
While Apple has not appeared overly concerned about the performance of its streaming service—given that it is not central to its core business—the company seems to be shifting away from its no-limit spending approach. This change is reflected in its hesitance to renew series for a third season, as indicated by Bloomberg’s findings.
Additionally, Apple TV+ is the last major streaming platform without an advertising tier, but that status may soon change, especially following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.