Apple is reportedly aware that it has been overspending on television shows and movies that many viewers might not recognize. According to Bloomberg, the tech giant is reconsidering its strategy for Apple TV+ after investing around $20 billion in original content.
The report indicates that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets. The duo has expressed a desire for the streaming platform to change its image as the most significant spender in the industry.
This summer, Apple invested a staggering $250 million in the miniseries “Masters of Air,” which has not gained significant audience attention. The company has also allocated over $500 million for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ holds just 0.2% of total TV viewership in the United States, garnering less engagement in a month than Netflix does within a single day. Subscriber growth has also been challenging for Apple TV+.
Though Apple seems unconcerned about these streaming issues, as it is not a core part of its business, the era of unchecked spending may be coming to an end. This shift is already reflected in its hesitation to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service yet to introduce an ad-supported tier, a situation that may change following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.