Apple is aware that it has been investing excessively in television shows and movies that many consumers may not be familiar with. The company is deliberating on a new strategy for Apple TV+ after reportedly spending around $20 billion on original content.
According to a report from Bloomberg, Apple’s executive Eddy Cue has been engaging with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, to discuss how to manage budgets more effectively. The studio leaders have indicated a desire to transform the platform’s image, moving away from its reputation as the largest spender in the industry.
Apple has made significant financial commitments for various productions, such as the $250 million spent on the miniseries “Masters of Air,” which premiered this year but failed to generate much interest. Additionally, the company has invested over $500 million in films directed by renowned filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ commands a mere 0.2% of television viewership in the United States, achieving significantly fewer views in a month than Netflix does in just one day. Furthermore, the platform has faced challenges in growing its subscriber base.
While Apple’s streaming service issues do not appear to be a major concern for the tech powerhouse—given that streaming is not its primary business—a shift in its spending habits may be on the horizon. This is suggested by its increasing reluctance to renew shows for a third season.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation likely to change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.