Apple is recognizing that its expenditures on television shows and movies have been excessively high, particularly for content that many viewers are unfamiliar with.
The company is contemplating a new strategy for its streaming service Apple TV+ following its staggering investment of $20 billion in original programming, as reported by Bloomberg.
According to the outlet, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The studio heads have suggested that the streaming service aims to move away from its image as the largest spender in the industry.
Apple’s financial commitments include substantial sums for various productions, such as $250 million for the miniseries “Masters of Air,” which debuted this year with minimal impact. Additionally, it has invested over $500 million for films featuring notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its vast financial outlay, Apple TV+ holds merely 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix draws in just 24 hours. The service has also faced challenges in boosting its subscriber count.
Although the issues facing Apple TV+ do not seem to alarm the tech giant, given that streaming is not a primary aspect of its business, signs indicate that its era of unrestricted spending is coming to an end. This shift has already manifested in the hesitance to renew shows for a third season, according to Bloomberg data.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier. However, this status could change following the company’s hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.