Apple is aware that its spending on TV shows and movies is excessive, with many titles going unnoticed by viewers. After investing an astonishing $20 billion in original content, the company is reconsidering its approach to Apple TV+, as reported by Bloomberg.
Discussions have been held between Apple executive Eddy Cue and Apple TV+ studio chiefs Zack Van Amburg and Jamie Erlicht about cutting budgets. Van Amburg and Erlicht have indicated a desire for the streaming service to move away from being viewed as the industry’s predominant spender.
Apple’s substantial financial outlays include $250 million for the miniseries “Masters of Air,” which premiered this year but failed to garner significant interest. Additionally, the company has invested over $500 million in films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ commands only 0.2% of TV viewership in the US, attracting fewer viewers in a month than Netflix captures in just one day. Furthermore, it has faced challenges in growing its subscriber base.
Although Apple TV+ is experiencing difficulties, the broader tech giant is not overly concerned since streaming is not its primary business focus. However, signs indicate that its era of limitless spending may be coming to an end, as reflected in its hesitance to renew certain shows for third seasons, according to Bloomberg’s data.
Currently, Apple TV+ is the only major streaming service that does not offer an advertising tier, but this may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.