Apple is aware that it has been investing excessively in television shows and movies that many viewers may not recognize.
The tech giant is reportedly considering a new strategy for Apple TV+ after spending around $20 billion on original content, as stated by Bloomberg. Apple executive Eddy Cue has been engaged in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing budget allocations. The studio chiefs have suggested the need to move away from being perceived as the largest spender in the industry.
Apple’s significant financial commitments include $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release this year. Additionally, the company has invested over $500 million in films by well-known directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this high level of expenditure, Apple TV+ commands only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The service has struggled to grow its subscriber base.
While Apple’s streaming service issues haven’t caused major concern for the technology company—since streaming is not a primary business focus—the trend of unrestricted spending appears to be coming to an end. This shift is suggested by Apple’s reluctance to renew certain shows for third seasons, according to Bloomberg.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, but this may soon change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.