Apple has recognized that it is overspending on TV shows and movies that many viewers are not familiar with. According to a report from Bloomberg, the company is considering a new strategy for Apple TV+ after investing approximately $20 billion in original content.
Apple executive Eddy Cue has reportedly been in discussions with the heads of Apple TV+’s studio division, Zack Van Amburg and Jamie Erlicht, about reducing budgets. The studio heads have indicated a desire to move away from the platform’s reputation as the largest spender in the industry.
Apple has made substantial investments in content, including $250 million for the miniseries “Masters of Air,” which premiered this year with minimal impact. Additionally, the platform has spent over $500 million on projects from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ has only captured 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix garners in just 24 hours. The service has also faced challenges in boosting its subscriber base.
Although Apple is not overly concerned about these issues, as streaming services are not central to its business model, it appears to be moving away from unlimited spending. This shift is evident in its hesitation to renew shows for third seasons, as reported by Bloomberg.
Currently, Apple TV+ does not offer an advertising tier, making it the last major streaming service in this category. However, this could change following the company’s recent hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.