Apple has acknowledged that it is spending excessively on original TV shows and movies that are largely unfamiliar to audiences. The company is reportedly reevaluating its strategy for Apple TV+ after investing approximately $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to rein in production budgets. The studio heads have indicated a desire for the streaming service to move away from its current image as the biggest spender in the industry.
The tech giant has invested significant amounts in productions, including $250 million for the miniseries “Masters of Air,” which saw minimal viewer engagement upon its release. Furthermore, it has spent over $500 million on films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial financial outlay, Apple TV+ commands only 0.2% of television viewership in the United States, with its monthly views falling short of Netflix’s daily viewership. The service has also faced challenges in growing its subscriber base.
Although Apple TV+ faces these issues, the streaming service is not a primary focus for the tech company, which has indicated that its era of unrestricted spending is coming to an end. This is evidenced by a reluctance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, a situation likely to change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.