Apple recognizes that it has been overspending on television shows and films that many viewers are unfamiliar with. According to a report from Bloomberg, the company is contemplating a revised strategy for its Apple TV+ service after investing an astounding $20 billion in original content.
The report indicates that Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studio division, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The duo has purportedly conveyed that the streaming platform is eager to change its image as the industry’s top spender.
Apple has invested significant amounts in various projects, including $250 million for the miniseries “Masters of Air,” which saw lackluster success upon its release this year. Additionally, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ holds a mere 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix receives in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple TV+’s struggles do not seem to be a primary concern for the tech giant—given that streaming is not a core component of its business—the era of its unrestricted spending may soon come to an end. This potential change is apparent in its hesitance to renew shows for third seasons, according to Bloomberg data.
Notably, Apple TV+ is the last significant streaming service that does not offer an ad-supported tier. However, this is expected to evolve following the company’s recruitment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.