Apple is acknowledging that it has been spending excessively on television shows and movies that many viewers are unfamiliar with. The company is reportedly reassessing its strategy for Apple TV+ after investing approximately $20 billion in original content, as per a Bloomberg report.
According to the report, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. Van Amburg and Erlicht have indicated that the platform aims to move away from its image as the highest spender in the industry.
Apple has made significant investments in productions, including $250 million for the miniseries “Masters of Air,” which debuted this year with minimal impact. Additionally, the company has spent over $500 million on films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive expenditures, Apple TV+ captures only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix receives in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles don’t seem to concern the tech giant—since streaming is not a primary focus of its business—it appears that the era of unrestricted spending may be coming to an end. This is reflected in its hesitance to renew shows for third seasons, as reported by Bloomberg.
Apple TV+ remains the only major streaming service without an ad-supported tier, but this situation might change soon following the recent hiring of advertising executive Joseph Cady from NBCUniversal.