Apple is rethinking its costly strategy for original content as it has reportedly invested around $20 billion in television shows and movies, many of which have gone unnoticed by audiences.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about cutting down production budgets. They have indicated a desire to move away from being perceived as the largest spender in the industry.
Apple’s spending has included significant expenditures, such as $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain much attention. Additionally, over $500 million has been spent on films created by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these high investments, Apple TV+ only captures 0.2% of television viewership in the U.S., garnering fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While the tech giant does not view streaming as central to its operations, it appears that the era of unlimited spending may soon come to an end, especially as evidenced by its hesitance to renew certain shows for a third season.
Notably, Apple TV+ remains the only major streaming service without an ad-supported tier, although this might change after the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.