Apple is aware that its investment in original content for Apple TV+ may be excessive, particularly for shows and movies that have not gained significant recognition.
The company is reportedly looking for a new strategy after spending around $20 billion on original programming, as reported by Bloomberg. Apple executive Eddy Cue has been discussing budgetary constraints with studio heads Zack Van Amburg and Jamie Erlicht, who aim to change the perception that the streaming service is merely an extravagant spender.
Historically, Apple has invested heavily in various projects, including $250 million for the miniseries “Masters of Air,” which was released earlier this year but did not achieve much success. Moreover, the company has reportedly spent over $500 million on films featuring renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial financial commitment, Apple TV+ holds only 0.2% of the television viewership in the United States, attracting far fewer viewers in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+ is currently not central to Apple’s overall business strategy, it appears that the era of unrestricted spending is coming to an end. This shift may be reflected in the company’s hesitance to renew shows for their third seasons, according to Bloomberg’s data.
Additionally, Apple TV+ remains the last major streaming platform without an advertisement-based tier, though this may soon change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.