Apple is aware that it has been investing excessively in television shows and movies that many people may not recognize or have even heard of.
The tech giant is reportedly reassessing its strategy for Apple TV+ after spending an impressive $20 billion on original content, according to Bloomberg. Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to consider reducing production budgets. They have indicated the desire to shift away from the perception that the streaming service is the industry’s most extravagant spender.
Notable expenditures include a staggering $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain significant attention. Additionally, more than $500 million has been allocated for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant investments, Apple TV+ commands a mere 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix manages in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not seem particularly concerned about the struggles of Apple TV+, as streaming is not a primary focus of its business model, there are indications that its era of unrestricted spending may be coming to an end. This is reflected in the company’s hesitation to renew shows for third seasons.
Notably, Apple TV+ remains the last major streaming service without an ad-supported tier. However, this may change soon following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.