Apple has recognized that it is overspending on its TV shows and movies, many of which are unfamiliar to viewers.
The company is reportedly considering a new strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg. Company executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They have also indicated a desire to move away from being seen as the industry’s largest spender.
Apple has made substantial financial commitments for various productions, including $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain significant traction. Additionally, Apple has invested over $500 million in films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive spending, Apple TV+ captures only 0.2% of TV viewership in the United States, with its monthly view count falling short of what Netflix achieves in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While the issues facing Apple TV+ do not seem to alarm the tech giant, given that streaming is not a primary focus of its business, it appears that the era of limitless spending might be ending. This shift is reflected in its hesitancy to renew shows for third seasons, as per Bloomberg’s findings.
Notably, Apple TV+ remains the only significant streaming service without an advertising tier. However, this may change after the recent hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.