Apple is reportedly acknowledging that it is overspending on original television shows and films, many of which have gone unnoticed by viewers. The company is considering a new strategy for Apple TV+ after investing an astonishing $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The duo has reportedly indicated that the streaming service wishes to move away from its image as the industry’s largest spender.
The tech giant has invested significant amounts in projects, including $250 million for the miniseries “Masters of Air,” which saw a lackluster response upon release. Additionally, it has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its enormous expenditures, Apple TV+ has only captured 0.2% of TV viewership in the United States, receiving fewer views in a month than Netflix accumulates in just one day. The platform has also encountered difficulties in growing its subscriber base.
While Apple TV+’s challenges have not raised alarms within the broader company, as streaming is not its primary focus, there are indications that the era of unrestricted spending may be coming to an end. Evidence of this trend includes Apple’s hesitance to renew some shows for third seasons, as noted in Bloomberg’s reporting.
Notably, Apple TV+ remains the last significant streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.