Apple is reportedly aware of its excessive spending on television shows and films that are often unfamiliar to viewers. The company is considering a new strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of the Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. They have expressed a desire for the streaming service to move away from its image as the largest spender in the industry.
The technology giant has invested heavily in various productions, including $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release this year. Additionally, over $500 million has been spent on movies directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant expenditure, Apple TV+ holds a mere 0.2% of television viewership in the United States, garnering fewer views in an entire month than Netflix attracts in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not view the challenges at Apple TV+ as a concern—partly due to streaming not being a core focus of its business—the era of unrestricted spending may soon come to an end. This shift appears evident in the company’s hesitance to renew shows for third seasons, as indicated by recent reports.
Notably, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier, although this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.