Apple is aware that it has been overspending on television shows and movies, many of which are unfamiliar to viewers. The tech giant is reportedly reassessing its strategy for Apple TV+ after investing approximately $20 billion in original content, according to Bloomberg.
Eddy Cue, an executive at Apple, has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The duo has indicated a desire to move away from the perception that Apple is the most extravagant spender in the industry.
This excessive spending has included significant investments like the $250 million allocated for the miniseries “Masters of Air,” which was released this year with minimal viewer engagement. Additionally, over $500 million has been spent on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the high expenditure, Apple TV+ holds only a 0.2% share of TV viewership in the United States, garnering fewer views in a month than Netflix receives in just 24 hours. The service has also faced challenges in growing its subscriber base.
Although Apple TV+ is not central to Apple’s business model, the company appears to be shifting its approach to spending, as indicated by its reluctance to renew some shows for a third season. Notably, Apple TV+ is the only major streaming service without an advertising tier, a situation that may soon change with the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.