Apple is reportedly cognizant of its excessive spending on television shows and movies that many viewers may not be familiar with. The company is considering a strategic shift for Apple TV+ after investing around $20 billion in original content, according to Bloomberg.
Bloomberg disclosed that Eddy Cue, Apple’s senior vice president, has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio leaders have conveyed an intention to change the perception of the streaming service as the largest spender in the industry.
Prominent financial commitments by Apple include $250 million for the miniseries “Masters of Air,” which has underperformed since its release this year. Additionally, the company has allocated over $500 million for films directed by industry giants like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ captures only 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix does in just 24 hours. The service has also faced challenges in boosting its subscriber base.
Apple’s lack of concern about Apple TV+’s issues may stem from the fact that streaming is not a primary focus of its business model. However, indications suggest that the era of boundless spending may be coming to an end, as the company has shown hesitation to renew several shows for third seasons.
Currently, Apple TV+ remains the only significant streaming platform without an advertising tier. This could change soon, especially after the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.