Apple has recognized that it is investing heavily in television shows and movies that many viewers may not know about. The company is reportedly exploring a new strategy for its streaming service, Apple TV+, following an enormous expenditure of $20 billion on original content.
Bloomberg has reported that executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing costs. Both Van Amburg and Erlicht have conveyed that Apple TV+ aims to change its image as the industry’s top spender.
Apple has made substantial financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which did not attract significant viewership upon its release this year. Additionally, the company has invested over $500 million in films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive spending, Apple TV+ captures only 0.2% of U.S. TV viewership, registering fewer monthly views than Netflix accumulates in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s issues seem to have little effect on the broader company, given that streaming is not its main area of focus, signs indicate that the era of unlimited spending is coming to an end. This change is reflected in Apple’s reluctance to renew shows for third seasons.
Notably, Apple TV+ remains the last major streaming service without an advertising tier, but this may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.