Apple is aware that it has been excessively investing in television shows and films that many consumers may not recognize or have even heard of.
The company is reportedly considering a new strategy for its streaming service Apple TV+ after spending an astounding $20 billion on original content, according to a report from Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studio, Zack Van Amburg and Jamie Erlicht, about managing budgets more effectively. The team has conveyed that they aim to change the perception of the platform as the largest spender in the industry.
This financial commitment includes a staggering $250 million spent on the miniseries “Masters of Air,” which released this year but experienced minimal viewer engagement. Additionally, Apple has allocated over $500 million for films helmed by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite their significant investment, Apple TV+ captures only 0.2% of television viewership in the United States, garnering fewer monthly views than Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple’s extensive spending on content has not been a pressing concern for the tech company—given that streaming is not its primary business—signs indicate that such spending limits may soon be implemented. The company has already shown a reluctance to renew shows for third seasons, as highlighted by Bloomberg data.
Apple TV+ stands out as the only major streaming service that has not introduced an ad-supported tier, a situation likely to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.