Apple is reportedly aware that it is overinvesting in original TV shows and movies that have little visibility among audiences. The company plans to adjust its strategy for Apple TV+ following a staggering $20 billion expenditure on content, according to Bloomberg.
Discussions are underway among Apple executives, including Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht, about tightening budgets and moving away from being perceived as the industry’s leading spender.
Apple has invested heavily in projects, allocating $250 million to the miniseries “Masters of Air,” which failed to garner significant attention upon its release this year. Additionally, the company has spent over $500 million on films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such extensive financial commitments, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does within just one day. This has led to difficulties in growing subscriber numbers.
While Apple’s streaming service challenges do not seem to significantly concern the broader tech company—since streaming is not central to its business model—the era of unrestricted spending appears to be coming to an end. This shift is reflected in the company’s hesitance to renew series for third seasons, as suggested by Bloomberg.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier. However, this could change, especially after the recent recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.