Apple has acknowledged that its investment in original TV shows and movies, many of which have gone unnoticed by audiences, has been excessive. The company is reportedly considering a new approach for Apple TV+ after spending an astounding $20 billion on content, according to a report from Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. The duo has also indicated that the streaming service wants to move away from its image as the industry’s largest spender.
Notable expenditures include $250 million for the miniseries “Masters of Air,” which premiered this year with minimal audience impact. Additionally, the platform has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant spending, Apple TV+ captures only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix achieves in just one day. The service has also faced challenges in growing its subscriber base.
Although the streaming service’s struggles do not appear to be causing alarm within Apple, given that streaming is not a primary aspect of its business, the trend of unrestricted spending is likely coming to an end. Signs of this shift can be seen in the company’s hesitance to renew shows for third seasons.
Apple TV+ currently stands out as the last major streaming platform without an advertising tier, something that may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.