Apple acknowledges that it has been overspending on TV shows and movies that most viewers may not even recognize.
According to a report from Bloomberg, the company is considering a new strategy for Apple TV+ after investing an astounding $20 billion in original content. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to scale back budgets. The duo has apparently conveyed a desire for the platform to shed its image as the biggest spender in the industry.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain traction. Additionally, the company has spent over $500 million on films produced by acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive investments, Apple TV+ accounts for only 0.2% of TV viewership in the United States, attracting fewer views in a month than Netflix receives in just a single day. The service has also faced challenges in growing its subscriber base.
However, Apple does not seem overly concerned about these issues, as streaming is not a primary focus of its business. Still, the trend of unrestricted spending may be coming to an end, as indicated by the company’s hesitance to renew shows for a third season, according to Bloomberg.
Notably, Apple TV+ is the last major streaming service without an advertising tier, but this might change soon, especially following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.