Apple is aware that it is overspending on TV shows and films that most viewers may not recognize or know about.
The company is reportedly considering a new strategy for Apple TV+ after investing around $20 billion in original content, according to a report from Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+ heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. They have suggested that the platform aims to change its image as the industry’s largest spender on content.
Significant investments have been made in various projects, including $250 million for the miniseries “Masters of Air,” which had little impact upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, as reported by Bloomberg.
Despite these considerable expenditures, Apple TV+ holds merely 0.2% of TV viewership in the US, attracting far fewer views in a month than Netflix garners in just 24 hours. The service has also faced challenges in expanding its subscriber base.
While the streaming service’s issues do not appear to cause significant concern for the tech giant—given that streaming is not central to its overall business—the company seems to be moving away from its previous limitless spending approach. This is highlighted by its cautiousness in renewing shows for third seasons, according to Bloomberg data.
Apple TV+ currently stands out as the only major streaming service without an ad-supported tier, a situation that is anticipated to shift following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.