Apple acknowledges that it is spending excessively on original TV shows and movies that many viewers may not even know exist. The company is reportedly reconsidering its strategy for Apple TV+ after investing around $20 billion in original content.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio chiefs are said to be working on improving the platform’s image, aiming to move away from being seen as the biggest spender in the industry.
Apple has invested significant amounts in various projects, including a staggering $250 million for the miniseries “Masters of Air,” which premiered this year but failed to make a significant impact. The company has also committed over $500 million to films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such substantial investments, Apple TV+ holds merely 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix does in just 24 hours. The service has faced challenges in attracting new subscribers.
While Apple does not seem overly concerned about the streaming service’s issues—since streaming is not a primary focus of its business—it appears that the era of unlimited spending is nearing its end. This shift is reflected in its hesitance to renew shows for third seasons, as highlighted by Bloomberg’s data.
Notably, Apple TV+ is the only major streaming platform yet to introduce an ad-supported tier. However, this may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.