Apple is aware that it is investing excessively in television shows and movies that many viewers may not recognize or have even heard of.
According to a report from Bloomberg, the company is reevaluating its strategy for Apple TV+ after spending an astounding $20 billion on original content. Apple executive Eddy Cue has been engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding the need to tighten budgets. The studio executives have indicated that the platform aims to move away from its image as the industry’s largest spender.
The company has made significant financial commitments to productions, including a staggering $250 million for the miniseries “Masters of Air,” which debuted this year but failed to generate significant interest. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable expenditure, Apple TV+ accounts for just 0.2% of television viewership in the United States, receiving fewer views in an entire month than Netflix receives in just 24 hours. Furthermore, the service has faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not raised major concerns within the tech giant—given that streaming isn’t central to its business—its era of unchecked spending seems to be coming to an end. This shift is already apparent, as evidenced by the company’s hesitation to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, a situation likely to change following the appointment of Joseph Cady, an ad executive from NBCUniversal, earlier this year.