Apple is reportedly aware that it’s overspending on original TV shows and movies that many viewers may not recognize. The company is reassessing its approach to Apple TV+ after investing around $20 billion in content, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with Zack Van Amburg and Jamie Erlicht, heads of Apple TV+, to rein in production budgets. The studio chiefs are reportedly aiming to change the platform’s image as the largest spender in the industry.
The company has made substantial investments in high-profile productions, including $250 million for the miniseries “Masters of Air,” which underperformed after its release this year. Additionally, Apple has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive financial outlay, Apple TV+ only holds a 0.2% share of TV viewership in the United States, attracting fewer viewers in one month than Netflix does in a single day. The service has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core component of its business, the company appears to be moving away from its previous unlimited spending, as indicated by its reluctance to renew certain shows for third seasons, according to Bloomberg data.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, although this could change soon, following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.