Apple has recognized that it is investing excessively in TV shows and movies that many consumers may not be familiar with. The company is reevaluating its strategy for Apple TV+ after reportedly spending an astounding $20 billion on original content, as reported by Bloomberg.
According to sources, Apple executive Eddy Cue has been discussing budget constraints with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht. Both are reportedly indicating a desire for the streaming service to move away from its image as the largest spender in the industry.
Apple’s expenditures have included significant amounts such as $250 million for the miniseries “Masters of Air,” which premiered this year but did not generate much interest. Additionally, the company has invested over $500 million in films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this monumental spending, Apple TV+ captures only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Even though Apple TV+’s struggles have not raised alarms within the tech company, given that streaming is not its primary business focus, it appears that the era of unlimited expenditure is coming to an end. This shift is further evidenced by the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the last significant streaming service without an advertising tier. However, this could soon change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.