Apple is aware that it has been overspending on original television shows and movies that many consumers may not even recognize. The company is reportedly analyzing a new strategy for its streaming service, Apple TV+, after investing around $20 billion in original content, as reported by Bloomberg.
Eddy Cue, a senior executive at Apple, has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio chiefs have indicated a desire to change the service’s perception as the biggest spender in the industry.
Apple has allocated substantial funds for various productions, such as the $250 million miniseries “Masters of Air,” which was released this year but failed to generate significant interest. Bloomberg also noted that the company has invested over $500 million on films directed by renowned filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this large expenditure, Apple TV+ holds only 0.2% of television viewership in the United States, accumulating fewer views in a month than Netflix garners in just 24 hours. Additionally, gaining new subscribers has proven to be a challenge for the platform.
Although Apple does not view streaming as a core aspect of its business and seems untroubled by the difficulties faced by Apple TV+, the era of unrestricted spending appears to be coming to an end. The company has begun to signal this shift by hesitating to renew shows for third seasons, as indicated by Bloomberg data.
It’s worth noting that Apple TV+ is currently the only major streaming service without an advertising tier. However, this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.