Apple is reportedly aware that it is investing excessively in TV shows and movies that are largely unfamiliar to audiences. Following a staggering expenditure of $20 billion on original content, the company is considering a new strategy for its streaming service, Apple TV+, according to Bloomberg.
Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production costs. The two executives are believed to have expressed a desire for the streaming platform to move away from being perceived as the industry’s largest spender.
Apple’s financial outlay has led to significant investments in high-profile projects, including $250 million for the miniseries “Masters of Air,” which launched this year yet struggled to gain traction. The company has also invested upwards of $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant financial efforts, Apple TV+ holds merely 0.2% of TV viewership in the United States, receiving fewer views in a month than Netflix does within just 24 hours. The platform has experienced difficulties in expanding its subscriber base.
While the streaming service’s challenges have not caused alarm within the tech giant—given that streaming is not a central aspect of its business model—it appears that the era of unchecked spending is coming to a close. Evidence of this shift is visible in Apple’s cautious approach to renewing shows for third seasons.
Additionally, Apple TV+ remains the only major streaming service that does not offer an advertising tier. However, this situation may soon change following the recruitment of ad executive Joseph Cady from NBCUniversal earlier this year.