Apple is aware that it is expending excessive funds on television shows and films that most viewers may not recognize or have ever heard of.
The tech giant is contemplating a new strategy for its streaming service, Apple TV+, after investing an astounding $20 billion on original content, as reported by Bloomberg. David Cue, an Apple executive, has reportedly been discussing budget constraints with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht. They have expressed a desire to move away from the perception of being the largest spender in the industry.
Apple has invested significant amounts for various productions, including $250 million for the miniseries “Masters of Air,” which debuted this year with minimal impact. The company has also spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ holds only a 0.2% share of television viewership in the United States, accumulating fewer views in a month than Netflix does in just 24 hours. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles haven’t caused significant concern for the tech company—primarily because streaming is not central to its business—the era of lavish spending appears to be coming to an end. This shift has reportedly been reflected in their hesitation to renew certain shows for third seasons.
Currently, Apple TV+ stands out as the only major streaming platform without an advertising tier. However, this might change following the company’s hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.