Apple is reportedly recognizing that it has been overspending on original TV shows and movies that often go unnoticed by viewers. The company is now considering a new strategy for its streaming service, Apple TV+, after investing an astounding $20 billion in original content, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, regarding the need to control production budgets. These executives have indicated that the platform wants to move away from its reputation as the industry’s largest spender.
The tech giant has invested considerable amounts in various projects, including $250 million for the miniseries “Masters of Air,” which garnered limited attention upon its release this year. Additionally, Apple has spent over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ accounts for just 0.2% of television viewership in the United States, attracting far fewer viewers in a month than Netflix does in just 24 hours. The service has also had difficulties in growing its subscriber base.
While these challenges haven’t raised significant concerns for Apple, since streaming isn’t a core aspect of its business, the era of unlimited expenditure appears to be coming to an end. This shift is already being reflected in the company’s hesitance to renew its shows for third seasons, as indicated by Bloomberg’s data.
Apple TV+ stands out as the last major streaming platform without a tier that includes advertisements. However, this may soon change, as the company recently hired Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.