Apple is aware that it is overspending on television shows and movies that are largely unfamiliar to audiences. The tech giant is reportedly reviewing its approach to 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 about reducing budgets for original programming. The duo has indicated that the streaming service aims to move away from its image as the industry’s largest spender.
The company has invested substantial amounts in various productions, such as $250 million for the miniseries “Masters of Air,” which was released this year but received minimal engagement. Additionally, Apple has spent over $500 million on films by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive financial outlay, Apple TV+ accounts for only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours, and it has faced challenges in growing its subscriber base.
While Apple TV+’s struggles do not seem to pose a significant concern for the larger tech company—given that streaming is not a primary focus—it appears that the era of unlimited spending is nearing its end. This shift is already hinted at by its hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming platform that does not offer an ad-supported tier, a situation likely to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.