Apple is reportedly aware that it has been overspending on original TV shows and movies that many viewers may not have seen or even heard of. According to Bloomberg, the company is considering a new strategy for its streaming service, Apple TV+, after investing approximately $20 billion in original content.
Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing production budgets. The pair has indicated that the service aims to shake off its image as the top spender in the industry.
Among its high-profile expenditures, Apple spent $250 million on the miniseries “Masters of Air,” which debuted this year but failed to gain significant attention. The company has also invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these lavish investments, Apple TV+ commands only 0.2% of television viewership in the US, attracting significantly fewer monthly views than Netflix can garner in just a single day. Additionally, Apple TV+ has faced challenges in growing its subscriber base.
While the tech giant appears relatively unconcerned about these setbacks—given that streaming is not its primary business—there are signs that its era of unrestricted spending may be coming to an end. This shift is reflected in the company’s hesitance to renew series for third seasons, according to Bloomberg.
Apple TV+ currently stands out as the only major streaming service lacking an advertising tier. However, this may soon change, especially after the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.