Apple is reportedly aware that it is investing excessively in television shows and films that many viewers may not even be familiar with. According to Bloomberg, the company is considering a new strategy for its Apple TV+ service after spending around $20 billion on original content.
Apple executive Eddy Cue has been in discussions with the leaders of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about controlling spending. The streaming platform aims to improve its image, which has gained a reputation for being the largest spender in the industry.
The tech giant has made substantial investments in various productions, such as $250 million for the miniseries “Masters of Air,” which released recently without making a significant impact. Additionally, Apple has invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these high expenditures, Apple TV+ holds only 0.2% of television viewership in the United States, registering fewer views in a month than Netflix typically accumulates in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple does not seem overly concerned about the streaming service’s challenges—given that it is not a main focus of its business—the company’s era of unchecked spending may be coming to an end, as indicated by its hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service that has yet to introduce an advertisement-supported tier, a situation that may change after the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.