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. The tech giant is now considering a different strategy for its Apple TV+ service after investing an immense $20 billion in original content, according to Bloomberg.
Recent discussions between Apple executive Eddy Cue and Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht have centered on tightening budgets. The studio leaders have been vocal about a desire to move away from the perception that the platform is the largest spender in the industry.
Apple has invested significantly in high-profile projects, such as the $250 million miniseries “Masters of Air,” which premiered this year but failed to attract a substantial audience. Additionally, the service has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its massive financial outlay, Apple TV+ holds a mere 0.2% share of US TV viewership, with its monthly views trailing far behind Netflix’s 24-hour figures. The platform has also encountered challenges in increasing its subscriber base.
While Apple has not shown significant concern over the difficulties faced by its streaming service, given that streaming is not a primary focus of its business, it appears that its days of unlimited spending may be coming to an end. The company has already indicated this by hesitating to renew several shows for their third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that could change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.