Apple is recognizing that its spending on original shows and movies for Apple TV+ has become excessive, particularly for projects that many viewers may not be aware of. The company is reportedly considering a new strategy after investing around $20 billion in original content, as reported by Bloomberg.
Executives including Eddy Cue have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and improving the platform’s image as a major industry spender. Notable investments include $250 million on the miniseries “Masters of Air,” which received minimal engagement upon its release.
In addition, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this substantial expenditure, Apple TV+ holds just 0.2% of TV viewership in the United States, gaining fewer viewers in a month than Netflix attracts within a single day. The platform has also faced challenges in growing its subscriber base.
While Apple does not seem overly concerned about these difficulties—since streaming is not a primary focus of its business—indications of a shift away from unlimited spending are apparent. This is reflected in its hesitancy to renew series for a third season, as shown by Bloomberg’s findings.
Additionally, Apple TV+ remains the only major streaming service without an ad-supported tier, although this may soon change following the hiring of Joseph Cady, a former ad executive at NBCUniversal, earlier this year.