Apple is recognizing that it has been spending excessively on original television shows and movies that are often obscure to viewers. The company is now considering a new strategy for its Apple TV+ platform after investing around $20 billion in original content, as reported by Bloomberg.
According to the report, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio heads have conveyed a desire to shake off the image of being the biggest spender in the industry.
Apple’s considerable expenditures have included $250 million for the miniseries “Masters of Air,” which did not gain significant traction upon its release this year. Furthermore, the company has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ commands only 0.2% of television viewership in the United States, attracting fewer viewers over an entire month than Netflix does in just a single day. The platform has also faced challenges in growing its subscriber base.
While these issues have not raised immediate concerns for Apple, as streaming is not central to its business model, the trend of unlimited spending appears to be coming to an end. This shift has already been indicated by the company’s hesitance to renew shows for third seasons, according to Bloomberg sources.
Notably, Apple TV+ remains the only major streaming platform without an advertisement-supported tier, a situation that is expected to change following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.