Apple is aware that it has invested excessively in television shows and movies that many viewers may not recognize or be familiar with.
The company is reportedly considering a new strategy for its streaming service, Apple TV+, after spending around $20 billion on original content, according to Bloomberg. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back production budgets. The duo has also indicated a desire to alter the platform’s image as the largest spender in the industry.
Apple has made substantial financial commitments for various productions, such as the $250 million miniseries “Masters of Air,” which launched this year but garnered minimal viewership. Additionally, the company has invested over $500 million on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant expenditure, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in one month than Netflix does in just 24 hours. Increasing subscriber numbers has also proven to be a challenge for the service.
However, the streaming issues have not posed a serious concern for Apple, as streaming is not a central focus of its business model. Still, the company is hinting at a potential shift away from unlimited spending, indicated by its hesitance to renew series for a third season, as per Bloomberg insights.
In a notable move, Apple TV+ remains the only major streaming platform without an advertisement-supported tier. This could soon change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.