Apple has recognized that it is overspending on television shows and movies that many viewers may not be familiar with. The company is reportedly seeking a new strategy for its streaming service, Apple TV+, after investing a staggering $20 billion in original content, according to a report by Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The pair has reportedly indicated that the streamer wishes to move away from its image as the highest spender in the industry.
The tech giant has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which has received minimal attention since its release this year. Furthermore, Apple has invested over $500 million in films by notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ only accounts for 0.2% of television viewership in the U.S., attracting fewer viewers in a month than Netflix does in a single day. The service has also faced challenges in boosting its subscriber numbers.
Although Apple TV+ has not caused major concern for the broader company since streaming is not a central focus of its business, indications suggest that the era of unlimited spending may be coming to an end. This shift is reflected in the company’s hesitance to renew shows for third seasons, as noted by Bloomberg.
Additionally, Apple TV+ stands out as the only major streaming service without an advertising tier, a situation that is likely to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.