Apple recognizes that it is investing excessively in TV shows and movies that many viewers may not be familiar with.
The company is considering a new strategy for Apple TV+ after spending approximately $20 billion on original content, according to a report from Bloomberg.
Apple executive Eddy Cue has reportedly been discussing budget reductions with Apple TV+ studio leaders Zack Van Amburg and Jamie Erlicht. The pair has been expressing a desire to change the platform’s image as the industry’s largest spender.
Apple has made substantial investments in various projects, including $250 million for the miniseries “Masters of Air,” which saw a muted reception upon its release this year. The company has also allocated over $500 million for films directed by prominent filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these considerable expenditures, Apple TV+ only captures 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. It has also faced challenges in growing its subscriber base.
While Apple TV+’s challenges do not seem to be of major concern for the tech giant—given that streaming does not constitute the core of its business—the era of unlimited spending appears to be coming to an end. Evidence of this shift includes the company’s hesitance to renew shows for third seasons, as noted by Bloomberg.
Additionally, Apple TV+ remains the only significant streaming service without an advertising tier, a situation that may soon change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.