Apple is aware that it has been overspending on television shows and films that many viewers may not recognize. The company is now reassessing its strategy for Apple TV+ after investing approximately $20 billion in original content, according to a report from Bloomberg.
Eddy Cue, an Apple executive, has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht regarding budget limitations. Reports indicate that they are working to change the platform’s image as the largest financial spender in the industry.
Apple’s significant expenditures include $250 million for the miniseries “Masters of Air,” which premiered this year with minimal impact. The company has also invested over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these heavy investments, Apple TV+ holds only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix attracts in just 24 hours. The service has also faced challenges in expanding its subscriber base.
Even with its difficulties, Apple appears unconcerned, as streaming does not form a central part of its business model. However, the era of unrestricted spending may soon be ending, as indicated by the company’s reluctance to renew shows for third seasons, according to Bloomberg.
Apple TV+ is currently the only major streaming service that does not offer an ad-supported tier. This is expected to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.