Apple is reportedly aware that it is overspending on TV shows and movies that are not widely recognized. The company is considering a new strategy for Apple TV+ after investing around $20 billion in original content, as noted by Bloomberg.
According to the report, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The executives have expressed a desire for the platform to move away from its image as the industry’s largest spender.
Apple has invested significantly in various projects, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain much attention. Additionally, the company has spent over $500 million on films from well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than what Netflix garners in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple does not view streaming as central to its business, the company’s days of unrestricted spending appear to be limited. This shift is already evident as evidenced by its hesitance to renew shows for third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ remains the last major streaming service without an advertising tier, a situation that may change following the appointment of Joseph Cady, an ad executive from NBCUniversal, earlier this year.