Apple is aware that it has been investing excessively in TV shows and movies that many people may not recognize or even have heard of. The company is reportedly reevaluating its approach to Apple TV+ after spending an astonishing $20 billion on original content, as reported by Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. Van Amburg and Erlicht have indicated that the streaming service aims to shake off its image as the industry’s largest spender.
The tech giant has invested significant amounts in various productions, including $250 million for the miniseries “Masters of Air,” which garnered little interest upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its hefty investments, Apple TV+ has only captured 0.2% of TV viewership in the US, with fewer views in a month than Netflix receives in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles don’t seem to concern the broader company, as streaming isn’t central to its business model, the era of unrestricted spending appears to be coming to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the company’s recent hiring of Joseph Cady, a former ad executive from NBCUniversal.