Apple is acknowledging its high spending on television shows and movies, many of which are not well-known to audiences. The company is reportedly looking into a new strategy for Apple TV+ after investing around $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht regarding budget management. Van Amburg and Erlicht have indicated that the streaming service aims to move away from its image as the industry’s largest spender.
The company has made significant investments, such as the $250 million spent on the miniseries “Masters of Air,” which has not gained much traction since its release this year. Furthermore, Apple has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ holds only 0.2% of television viewership in the U.S., receiving fewer views in a month than Netflix garners in just 24 hours. The service has also faced challenges in boosting its subscriber numbers.
While Apple hasn’t shown much concern over the issues plaguing Apple TV+, as streaming isn’t central to its business, it appears that the era of unrestricted spending may be coming to an end. Signs of this shift are evident in the company’s recent hesitance to renew shows for third seasons, based on Bloomberg data.
Additionally, Apple TV+ is currently the only major streaming platform without an advertising tier. However, this may soon change, following the company’s recent hiring of Joseph Cady, an advertising executive from NBCUniversal.