Apple recognizes that its spending on original TV shows and movies has been excessive, particularly on content that has gone largely unnoticed.
The company is considering a revised strategy for Apple TV+ after investing a staggering $20 billion in original programming, according to reports from Bloomberg.
Apple executive Eddy Cue has been discussing budget constraints with studio heads Zack Van Amburg and Jamie Erlicht. They are reportedly aiming to change the platform’s image as the biggest spender in the industry.
Notable expenditures include $250 million for the miniseries “Masters of Air,” which received minimal engagement upon release this year. Additionally, Apple has spent over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant investment, Apple TV+ has captured only 0.2% of TV viewership in the United States, with its monthly viewership being overshadowed by Netflix’s 24-hour performance. The platform has also faced challenges in attracting new subscribers.
Although streaming isn’t a primary focus for Apple, the company appears to be signaling a shift away from unlimited spending. This has been evident in its hesitance to renew shows for third seasons.
Currently, Apple TV+ remains the only major streaming platform without an advertisement-supported tier, a status that may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.