Apple is aware that it has been investing excessively in TV shows and movies that many viewers may not recognize or even know about.
As Bloomberg reported, the tech giant is considering a shift in its strategy for Apple TV+ after spending an eye-watering $20 billion on original content. Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and reduce the platform’s image as the largest spender in the industry.
Significant financial commitments have included $250 million for the miniseries “Masters of Air,” which debuted this year but failed to capture much audience interest. The service has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ only commands 0.2% of TV viewership in the U.S., receiving fewer monthly views than Netflix does in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple does not treat streaming as a central aspect of its business, it appears the era of unlimited spending might be coming to an end. This shift is already noticeable in the company’s hesitance to renew series for a third season, as per Bloomberg’s observations.
Additionally, Apple TV+ currently stands out as the last major streaming service without an advertising tier, a situation that is expected to change following the appointment of former NBCUniversal ad executive Joseph Cady earlier this year.