Apple is reportedly acknowledging that it has overspent on original TV shows and movies, many of which have gone unnoticed by viewers. According to Bloomberg, the company is reassessing its strategy for Apple TV+ after spending an astounding $20 billion on content.
Apple executive Eddy Cue has supposedly held discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget reductions. There are indications that the streaming service aims to move away from its image as the industry’s largest spender.
The company has invested substantial amounts in various projects, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain significant attention. Additionally, it has allocated over $500 million for films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, as reported.
Despite this hefty expenditure, Apple TV+ captures only 0.2% of TV viewership in the US, garnering fewer views in a month than Netflix obtains in just 24 hours. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles do not seem to concern the broader tech company—given that streaming is not its primary focus—the era of unrestricted spending appears to be coming to an end. This shift has been suggested by the company’s hesitance to renew shows for third seasons.
It’s worth noting that 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.