Apple is aware that it is overspending on television shows and movies that many viewers may not recognize.
The company is reportedly considering a new strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets while also aiming to shift the platform’s image away from being known as the largest spender in the industry.
Significant expenditures include $250 million for the miniseries “Masters of Air,” which premiered this year with minimal success. Additionally, the platform has invested over $500 million on films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large investments, Apple TV+ holds only 0.2% of TV viewership in the US, receiving fewer views in a month than Netflix attracts in just one day. The service has also faced challenges in growing its subscriber base.
However, Apple doesn’t seem particularly concerned about the challenges facing Apple TV+, as streaming is not central to its business model. Still, the company appears to be moving away from its previous unrestrained spending habits, as evidenced by its reluctance to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service without an advertisement-supported tier, a situation that is expected to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.