Apple is aware that it is overspending on television shows and movies that are largely unfamiliar to audiences.
According to reports, the company is reconsidering its strategy for Apple TV+ after investing a staggering $20 billion in original content. Eddy Cue, an Apple executive, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about cutting back on budgets. Van Amburg and Erlicht have indicated that the streaming service aims to change its image as the largest spender in the industry.
The company has allocated significant funds for projects, such as $250 million for the miniseries “Masters of Air,” which debuted this year but failed to attract much attention. Additionally, over $500 million has been spent on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the extensive investment, Apple TV+ captures only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s challenges do not seem to concern the broader tech company—since streaming is not central to its business—the era of unlimited spending appears to be coming to an end. This shift is already evident with the company’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.