Apple is reportedly recognizing that it has been investing excessively in television shows and movies that are not well-known or widely viewed. According to a Bloomberg report, the company is reassessing its strategy for Apple TV+ after spending an astonishing $20 billion on original content.
Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht regarding the need to control budgets. The studio leaders have allegedly indicated that the streaming service aims to move away from its image as the largest financial spender in the industry.
The company has allocated substantial amounts for various projects, including $250 million for the miniseries “Masters of Air,” which premiered this year with minimal success. Additionally, Apple has invested over $500 million on films featuring prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant expenditure, Apple TV+ has captured only 0.2% of TV viewership in the United States, lagging behind Netflix, which garners more views in just 24 hours than Apple does in an entire month. Subscriber growth has also been a challenge for the platform.
While Apple TV+’s struggles have not caused major concern within the tech giant—since streaming is not central to its operations—the era of unrestricted spending appears to be coming to an end. This shift is reflected in the company’s hesitance to renew shows for a third season, as indicated by Bloomberg’s data.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier. However, this may soon change following the appointment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.