Apple is aware that it is investing excessively in TV shows and movies that many viewers may not recognize or have even heard of. The company is contemplating a new strategy for Apple TV+ after reportedly spending around $20 billion on original content, as stated by Bloomberg.
According to the report, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio executives have indicated that the streaming service aims to change its image as the biggest spender in the industry.
Apple’s significant investments include $250 million for the miniseries “Masters of Air,” released this year with minimal impact on viewership. Additionally, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ claims only 0.2% of TV viewership in the U.S., garnering fewer views in a month than Netflix achieves in just a day. The platform has faced challenges in boosting its subscriber base.
While Apple TV+’s issues do not seem to concern the tech giant—since streaming is not at the heart of its business—the era of unrestricted spending appears to be coming to an end. This shift is evident in the company’s hesitation to renew shows for third seasons, according to Bloomberg’s findings.
Notably, Apple TV+ is the last significant streaming service without an advertising tier. However, this might change soon, following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.