Apple is aware that it is investing excessively in TV shows and movies, many of which are likely unfamiliar to most viewers. The company is reportedly reconsidering its strategy for Apple TV+ after spending an astounding $20 billion on original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+’s studio leads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio leaders have indicated a desire for the streaming service to move away from its image as the industry’s biggest spender.
Apple has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon its release this year. Furthermore, more than $500 million has been allocated for films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ commands only 0.2% of the TV viewership in the United States, and it attracts fewer views in a month than Netflix receives in just 24 hours. The service has also faced challenges in attracting new subscribers.
While Apple does not prioritize streaming in its business model, the company appears to be signaling a shift away from its splurging habits, evident in its hesitance to renew shows for third seasons, based on Bloomberg’s analysis.
Currently, Apple TV+ stands out as the only major streaming platform without an advertising option. However, this may soon change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.