Apple is recognizing that it has been overspending on TV shows and movies that many viewers are not familiar with. The technology giant is reportedly considering a new strategy for its streaming service Apple TV+, having invested a staggering $20 billion in original content.
Bloomberg has reported that Apple executive Eddy Cue has been in discussions with Apple TV+’s studio leaders, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio chiefs are indicating a desire to move away from the image of being the highest spender in the industry.
The company has invested heavily in significant projects, such as the miniseries “Masters of Air,” which alone cost $250 million but had a lackluster reception upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these enormous expenditures, Apple TV+ currently holds only 0.2% of the television viewership market in the US. In fact, it garners fewer views in an entire month than Netflix achieves in just one day, and it has faced challenges in growing its subscriber base.
While Apple TV+’s difficulties do not seem to faze the broader tech company, as streaming is not a central pillar of its business, signs indicate that its era of unlimited spending may be coming to an end. The company has already shown hesitance in renewing shows for third seasons, as noted in Bloomberg’s findings.
Currently, Apple TV+ is the only major streaming platform without an advertisement-supported tier. However, that may soon change, following the company’s recent hire of Joseph Cady, a former advertising executive from NBCUniversal.