Apple is aware that it has been heavily investing in TV shows and movies that many consumers may not recognize or even know about.
According to a Bloomberg report, the company is considering a new strategy for Apple TV+ after spending an astonishing $20 billion on original content. Apple executive Eddy Cue has reportedly been in discussions with the platform’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. Both Van Amburg and Erlicht have been communicating the intent to move away from the service’s image as the biggest spender in the industry.
Apple’s substantial financial outlays include $250 million for the miniseries “Masters of Air,” which received little attention upon its release this year. The streaming service has also committed over $500 million to films from well-known directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix garners in just one day. The service has faced challenges in growing its subscriber base.
While these issues do not appear to be a major concern for Apple, as streaming is not a primary focus for the company, the trend of unrestricted spending is expected to shift. This change is already evident in the company’s reluctance to renew shows for additional seasons, as indicated by Bloomberg’s findings.
Furthermore, Apple TV+ is the only major streaming platform that does not currently offer an ad-supported tier. However, this may change soon, following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.