Apple recognizes that it is investing excessively in television shows and movies that many viewers may not be familiar with.
The company is reportedly reassessing its strategy for Apple TV+ after spending an astounding $20 billion on original content, according to Bloomberg. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce production budgets. Van Amburg and Erlicht have indicated a desire for the streaming service to move away from its image as the largest spender in the industry.
Apple has invested significantly in content, including $250 million on the miniseries “Masters of Air,” which received minimal audience engagement upon release. The company has also spent over $500 million on films directed by noted filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive financial outlay, Apple TV+ holds just 0.2% of the television viewership in the United States and attracts fewer viewers in a month than Netflix does in just one day, making it challenging to grow its subscriber base.
Although the tech giant does not consider streaming a central part of its business model, signals indicate that its era of unlimited spending may be coming to an end. This shift has already become apparent with the company’s hesitancy to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ is the last major streaming service that does not offer an ad-supported tier, but this could change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.