Apple is aware that its expenditures on TV shows and movies, many of which have gone unnoticed by the public, are excessive. The company is reportedly pursuing a new strategy for Apple TV+ after investing a staggering $20 billion in original content, according to Bloomberg.
Executive Eddy Cue has been engaging with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget reductions. Van Amburg and Erlicht are reportedly indicating that the streaming service aims to change its image as the industry’s largest spender.
Notable investments include $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain significant attention. In addition, Apple has spent over $500 million on films featuring prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these enormous financial commitments, Apple TV+ holds only 0.2% of TV viewership in the United States, with its monthly audience being dwarfed by Netflix’s viewership in just a single day. The platform has also faced challenges in attracting new subscribers.
While Apple does not seem overly concerned about these issues, as streaming is not a primary focus of its business, the era of unchecked spending may soon come to an end. This shift is already evidenced by the company’s hesitation to renew shows for third seasons.
Currently, Apple TV+ remains the only major streaming service without an ad-supported tier, but this may change soon following the hire of ad executive Joseph Cady from NBCUniversal earlier this year.