Apple is reportedly aware that it has been overspending on original content for its streaming service, Apple TV+, which has included numerous shows and films that many viewers may not even recognize.
According to Bloomberg, the company is now considering a more restrained approach after investing approximately $20 billion in creating original content. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to manage and reduce expenditures on productions. The duo has conveyed that the streaming service aims to move away from its image as the industry’s highest spender.
Among its costly projects, Apple spent $250 million on the miniseries “Masters of Air,” released this year, which received minimal attention. The company has also invested over $500 million on films directed by acclaimed filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ has captured only 0.2% of the television viewership market in the United States—struggling to compete with platforms like Netflix which garners more views in just 24 hours than Apple does in a month. Additionally, the platform has faced challenges in attracting new subscribers.
While Apple has not been particularly concerned about the performance of its streaming service, given that streaming is not a primary focus for the tech company, indications suggest that an era of unrestricted spending may come to an end. This shift is already reflected in the company hesitating to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming service to not offer an ad-supported tier. However, this is expected to change following the hiring of Joseph Cady, a former advertising executive at NBCUniversal, earlier this year.