Apple is realizing it has overspent on television shows and films that many viewers may not even recognize.
The company is reportedly considering a new strategy for Apple TV+ after investing an astonishing $20 billion on original content, according to Bloomberg. Apple executive Eddy Cue has been discussing budget constraints with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht. They have indicated a desire for the streaming service to move away from its image as the biggest spender in the industry.
Notably, Apple has invested considerable sums on various projects, including $250 million for the miniseries “Masters of Air,” which was released this year but did not garner significant attention. Additionally, the service has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive financial outlay, Apple TV+ commands just 0.2% of television viewership in the United States, with its monthly viewership numbers falling short of what Netflix achieves in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s issues do not seem to concern the tech giant—since streaming is not a primary focus of its business—the company’s days of unrestricted spending appear to be coming to an end. This is evident in its hesitance to renew shows for third seasons, as supported by Bloomberg data.
Currently, Apple TV+ is the only major streaming service lacking an advertising tier, but this may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.