Apple is aware that it has been investing excessively in television shows and films that many viewers may not recognize or have even heard of. The tech giant is reportedly considering a new strategy for its Apple TV+ streaming service after spending approximately $20 billion on original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht regarding budget reductions. Van Amburg and Erlicht have indicated that the platform aims to move away from its image as the biggest spender in the industry.
The company has invested substantial amounts in various productions, including $250 million for the miniseries “Masters of Air,” which was released this year but received minimal engagement. Additionally, Apple has allocated over $500 million for films featuring acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant investments, Apple TV+ accounts for only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although these issues have not appeared to trouble Apple, as streaming is not a primary component of its business model, the era of unrestricted spending seems to be nearing its end. This shift is evidenced by the company’s hesitance to renew existing shows for a third season.
Notably, Apple TV+ remains the only major streaming service without an advertising tier. However, this may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.