Apple is reportedly aware that it has been overspending on original TV shows and movies that have largely gone unnoticed by viewers. The company is looking to adopt a new strategy for Apple TV+ after investing around $20 billion in content, as reported by Bloomberg.
According to the report, Apple executive Eddy Cue has been in discussions with Apple TV+ studio leaders Zack Van Amburg and Jamie Erlicht to consider budget cuts. The studio chiefs have expressed a desire to change the perception of the platform as the biggest spender in the industry.
Apple has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain traction. It has also invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial spending, Apple TV+ holds only 0.2% of TV viewership in the U.S. and garners fewer views in a month than Netflix receives in 24 hours. The service has faced challenges in increasing its subscriber base.
Although Apple does not prioritize streaming as a central aspect of its business, it seems that its era of unlimited expenditure may be coming to an end. This shift has already been hinted at through its hesitation to renew shows for a third season.
Additionally, Apple TV+ remains the only major streaming service without an advertising tier, although this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.