Apple is aware that it has been investing excessively in television shows and movies that many viewers may be unfamiliar with.
As reported by Bloomberg, the company is reconsidering its strategy for Apple TV+ after spending an astonishing $20 billion on original content. Discussions have taken place within the company, involving executive Eddy Cue and the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about how to cut back on expenses. The studio leaders have also indicated their intent to change the platform’s image as the top spender in the industry.
Among its significant expenditures, Apple allocated $250 million for the miniseries “Masters of Air,” which premiered this year but failed to attract much audience interest. The platform has also invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, according to Bloomberg.
Despite this massive financial outlay, Apple TV+ has captured only 0.2% of U.S. television viewership, accumulating fewer views in one month than Netflix does in just 24 hours. The service has faced challenges in boosting its subscriber base as well.
However, Apple does not appear overly concerned about the performance of its streaming service, as it is not a primary focus of the company’s business model. Still, the era of unlimited spending may be coming to an end, a sentiment echoed in its hesitation to renew certain shows for third seasons, based on data from Bloomberg.
Currently, Apple TV+ remains the only major streaming service without an ad-supported tier, but this may be changing soon following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.