Apple is reportedly aware that it is overspending on original TV shows and movies, many of which are unfamiliar to viewers. According to Bloomberg, the company is re-evaluating its strategy for Apple TV+ after investing approximately $20 billion in original content.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing budgets. They have also communicated a desire to shift the streamer’s image away from being viewed as the industry’s top spender.
The tech giant has made significant investments in productions, such as the $250 million spent on the miniseries “Masters of Air,” which had minimal impact upon its release this year. The company has also allocated over $500 million for films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive expenditures, Apple TV+ commands just 0.2% of the TV viewership market in the US, receiving fewer views in a month than Netflix attracts in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming in its core business operations, it appears to be moving away from unchecked spending. This shift is reflected in its hesitation to renew shows for third seasons, based on data from Bloomberg. Notably, Apple TV+ remains the last major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.