Apple is reportedly aware that it is overspending on its TV shows and movies, many of which are relatively unknown to audiences. The company is now considering a revised strategy for Apple TV+ after investing approximately $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce budgets. The duo has shared with others that the streaming service aims to overcome its image as the industry’s largest spender.
Over the years, Apple has made significant financial commitments for various productions, including $250 million for the miniseries “Masters of Air,” released this year with minimal impact. The platform has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ claims only 0.2% of the viewership in the United States, attracting fewer views in a month than Netflix garners in a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles may not concern the tech titan significantly—given that streaming is not central to its business model—the end of its unrestricted spending appears imminent. Signs of this shift include a cautious approach toward renewing shows for third seasons, as per data from Bloomberg.
Currently, Apple TV+ is the last major streaming service that does not offer an ad-supported tier, although this could change following the company’s recruitment of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.