Apple is aware that it has spent excessively on original TV shows and films that many consumers may not recognize, according to a report from Bloomberg. The technology company is seeking to adopt a more sustainable approach to its streaming service, Apple TV+, having invested around $20 billion in original content.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. There is a shared intention among them to move away from being seen as the largest spender in the industry.
Significant financial commitments have been made, including $250 million for the miniseries “Masters of Air,” which saw little success upon release. Additionally, Apple has allocated over $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable investment, Apple TV+ has captured only 0.2% of TV viewership in the U.S., trailing far behind competitors like Netflix, which can garner more views in a single day than Apple TV+ does in an entire month. Furthermore, the service has faced challenges in attracting new subscribers.
Although Apple TV+’s struggles have not caused significant concern for the broader tech company, as streaming is not a primary business focus, the era of unlimited spending appears to be ending. This is reflected in the company’s hesitance to renew programs for third seasons, according to Bloomberg’s analysis.
Currently, Apple TV+ stands out as the last major streaming platform without an advertisement-supported tier, but this may soon change. The company’s recent hiring of Joseph Cady, an advertising executive from NBCUniversal, hints at potential developments in this area.