Apple is reportedly aware that it has been overspending on original TV shows and movies that many viewers may not recognize.
According to Bloomberg, the company is reevaluating its strategy for Apple TV+ after investing an astonishing $20 billion in content. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to implement budget constraints. The duo has indicated that the platform aims to move away from its image as the industry’s largest spender.
The tech giant has invested significantly in productions, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain traction. Additionally, Apple has allocated over $500 million for films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its hefty investments, Apple TV+ maintains a mere 0.2% share of TV viewership in the US, attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in growing its subscriber base.
Although Apple TV+ has not been a primary focus for the company, there are indications that its days of unrestrained spending may be coming to an end, particularly as it has hesitated to renew shows for third seasons. Furthermore, Apple TV+ remains the only major streaming service without a tier for advertisements, a situation poised to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.