Apple is reportedly aware that it is overspending on TV shows and movies that few have seen or even heard of. The company is considering a new strategy for its streaming service, Apple TV+, after investing around $20 billion in original content, according to a Bloomberg report.
Eddy Cue, an Apple executive, has been conferring with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about the need to cut back on spending. The studio chiefs have indicated a desire to move away from Apple TV+ being known as the industry’s largest spender.
Apple has made significant financial commitments for various productions, including $250 million for the miniseries “Masters of Air,” which has not garnered much traction since its release this year. Additionally, the company has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting fewer views in a month than Netflix receives in just 24 hours. The platform has also faced challenges in increasing its subscriber base.
While Apple TV+’s issues do not seem to pose an immediate concern for the tech giant, as streaming is not central to its business model, the era of unrestricted spending may be coming to an end. This shift has been suggested by the company’s hesitance to renew shows for a third season, as indicated by Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this may soon change, especially after the company recruited advertising executive Joseph Cady from NBCUniversal earlier this year.