Apple has acknowledged that it is overspending on TV shows and movies that have garnered little recognition or viewership. The company is now considering a new strategy for Apple TV+ after investing $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+ heads Zack Van Amburg and Jamie Erlicht to curb spending. Van Amburg and Erlicht have reportedly indicated that the streamer aims to move away from its reputation as the industry’s biggest spender.
Apple has invested heavily, including $250 million for the miniseries “Masters of Air,” which failed to gain significant traction. Additionally, the company has spent more than $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, Bloomberg reported.
Despite the vast expenditures, Apple TV+ holds just 0.2% of TV viewership in the US, falling far behind Netflix’s daily numbers in just a month. The platform has also faced challenges in growing its subscriber base.
While Apple doesn’t primarily rely on streaming for its business, the company’s days of limitless spending appear to be waning. This shift is evident in its hesitance to renew shows for third seasons, as noted by Bloomberg.
Apple TV+ is currently the last major streaming service without an ad-supported tier, but this may change following the company’s recent hiring of Joseph Cady, an advertisement executive from NBCUniversal.