Apple is aware that it has been overspending on TV shows and movies that are largely unknown to viewers. The tech giant is reportedly reevaluating its strategy for Apple TV+, having invested an astounding $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht regarding the need to control budgets. These executives have indicated that the platform aims to move away from its image as the largest spender in the industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain considerable attention. Additionally, Apple has invested over $500 million in films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its vast expenditures, Apple TV+ holds just 0.2% of TV viewership in the U.S., garnering fewer views in a month than Netflix achieves in just one day. The service has also faced challenges in boosting its subscriber base.
Although these issues haven’t raised alarms within Apple, as streaming services are not central to its operations, it appears the era of unrestricted spending may be coming to an end. The company has already hinted at this shift by being cautious about renewing shows for third seasons, as reported by Bloomberg.
Currently, Apple TV+ is the only major streaming service without an advertising tier, but this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.