Apple acknowledges that it has been spending excessively on original TV shows and movies that many viewers may not be aware of.
According to a report from Bloomberg, the company is reassessing its strategy for Apple TV+ after investing around $20 billion in original content. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing expenditures. The studio chiefs are reportedly aiming to alter the platform’s image as the highest spender in the industry.
Apple’s hefty investments include $250 million for the miniseries “Masters of Air,” which received little attention upon its release this year. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive spending, Apple TV+ commands only 0.2% of the television viewership in the United States, accumulating fewer views in a month than Netflix does in just 24 hours. The service has also encountered challenges in growing its subscriber base.
Although Apple TV+’s struggles do not appear to significantly concern the tech giant—given that streaming is not central to its business operations—the era of unrestrained spending is likely coming to an end. This shift is already evident in the company’s hesitance to renew several shows for third seasons, according to Bloomberg.
Notably, Apple TV+ is the only major streaming service that does not offer an advertising tier. However, this is expected to change following the company’s recent hiring of Joseph Cady, a former ad executive from NBCUniversal.