Apple has recognized that it is overspending on original television shows and films that are largely unfamiliar to audiences. The company is reportedly reassessing its strategy for Apple TV+ after investing approximately $20 billion in original content, as reported by Bloomberg.
Executives at Apple, including Eddy Cue, have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. They have indicated a desire to move away from being perceived as the biggest spender in the industry.
The tech giant has made substantial financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which saw lackluster engagement upon its release. Additionally, more than $500 million has been spent on films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ holds only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix does in just one day. The platform has also faced challenges in attracting new subscribers.
While Apple TV+’s struggles haven’t alarmed the overall company—since streaming isn’t a core aspect of its business—the era of limitless spending appears to be coming to an end. This shift is reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg’s data.
Apple TV+ is currently the last significant streaming service that does not offer an ad-supported tier. However, this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.