Apple is reevaluating its strategy for Apple TV+ as it acknowledges excessive spending on original content, which has amounted to around $20 billion, according to a Bloomberg report.
The company has been in discussions, led by executive Eddy Cue with studio chiefs Zack Van Amburg and Jamie Erlicht, about reducing production budgets. They have expressed a desire to move away from the perception that Apple is the largest spender in the industry.
Apple’s investments have included significant budgets, such as $250 million for the miniseries “Masters of Air,” which garnered little attention upon its release this year. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds a mere 0.2% of TV viewership in the US, receiving fewer views in a month than Netflix continues to secure in just 24 hours. The streaming service has faced challenges in growing its subscriber base.
While the tech giant does not view streaming as central to its business, the trend of unrestricted spending appears to be coming to an end. This shift is highlighted by its hesitancy to renew several shows for additional seasons. Notably, Apple TV+ is the last major streaming platform without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.