Apple is aware that it has been overspending on original TV shows and movies, many of which have gone unnoticed by audiences. The company is reportedly reconsidering its strategy for Apple TV+ after investing an astonishing $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been engaging with studio leaders Zack Van Amburg and Jamie Erlicht to discuss budget reductions. The studio heads have indicated that Apple TV+ aims to change its image as the largest spender in the industry.
The tech giant has allocated extensive funds for various projects, including $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain significant traction. Additionally, Apple reportedly spent over $500 million on films from esteemed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable investment, Apple TV+ has only captured 0.2% of TV viewership in the US, receiving fewer monthly views than Netflix does in just one day. The platform has also faced challenges in boosting its subscriber base.
Although these issues have not raised alarm bells within Apple, as streaming is not its primary business focus, the era of unrestricted spending appears to be coming to an end. Signs of this shift include the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the last major streaming service without an ad-supported subscription tier. However, this may soon change following the recent hiring of ad executive Joseph Cady from NBCUniversal.