Apple is aware that it is investing excessively in television shows and movies that many consumers might not recognize or have heard of.
According to a report from Bloomberg, the tech giant is considering a new strategy for its streaming service, Apple TV+, after spending around $20 billion on original content.
Apple executive Eddy Cue has reportedly been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing production budgets. They have also indicated a desire to move away from being recognized as the biggest spender in the industry.
Significant investments include $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain traction. Additionally, the company has invested over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ possesses only 0.2% of television viewership in the United States, with its monthly numbers falling short of Netflix’s daily viewership. The service has also encountered challenges in growing its subscriber base.
While Apple does not seem particularly alarmed by the challenges facing Apple TV+—as streaming is not a primary focus of its business model—the era of limitless spending appears to be coming to an end. This is suggested by the company’s hesitation to renew shows for third seasons, according to Bloomberg’s reports.
Additionally, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that may change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.