Apple is aware that it has been investing excessively in television shows and movies, many of which are not widely recognized. The company is reportedly considering a new strategy for Apple TV+ after spending approximately $20 billion on original content, according to Bloomberg.
Apple executive Eddy Cue has been engaging with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to discuss budget reduction measures. Van Amburg and Erlicht have mentioned that the streaming service aims to move away from its image of being the biggest spender in the industry.
Apple’s significant financial outlays include $250 million for the miniseries “Masters of Air,” released this year, which received little attention. Additionally, the company has invested over $500 million on projects from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its considerable investments, Apple TV+ commands only 0.2% of television viewership in the U.S., garnering fewer views in an entire month than Netflix does in just one day. The service has also faced challenges in attracting more subscribers.
Although Apple TV+’s challenges do not pose an immediate concern for the tech giant, as streaming is not a primary focus of its business, the era of unrestricted spending appears to be ending. This is reflected in the company’s hesitation to renew shows for a third season, as indicated by Bloomberg data.
Notably, Apple TV+ is the only major streaming service that does not offer an advertising tier. However, this could change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.