Apple is reportedly aware that it has been overspending on original television shows and movies that many viewers may not recognize.
According to Bloomberg, the company is reconsidering its strategy for Apple TV+ after investing an astounding $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 are indications that the streaming service aims to move away from its image as the industry’s largest spender.
Apple has made significant financial commitments to various projects, such as the $250 million spent on the miniseries “Masters of Air,” which received minimal attention upon its release. Furthermore, the company has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty expenditures, Apple TV+ accounts for only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just one day. Additionally, Apple has faced challenges in growing its subscriber base.
While the streaming difficulties have not raised major concerns for Apple since it does not rely heavily on this segment of its business, the era of unrestricted spending may be coming to an end. This shift is evident in the company’s hesitance to renew shows for third seasons, as supported by Bloomberg data.
Notably, Apple TV+ is the only major streaming platform that currently does not offer an ad-supported subscription tier, a situation likely to change following the recruitment of advertising executive Joseph Cady from NBCUniversal earlier this year.