Apple is reportedly aware that it has been overspending on television shows and movies that many viewers may not be familiar with. The company is considering a new strategy for Apple TV+ after investing an astonishing $20 billion in original content, as reported by Bloomberg.
According to the report, Apple executive Eddy Cue has been conferring with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The duo has indicated that the streaming service is looking to move away from its image as the industry’s largest spender.
Apple has made significant financial commitments to various projects, including $250 million for the miniseries “Masters of Air,” which received little attention when it was released this year. The company has also invested over $500 million in films created by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, according to Bloomberg.
Despite these substantial expenditures, Apple TV+ holds just 0.2% of television viewership in the U.S., garnering fewer views in a month than Netflix achieves in 24 hours. Additionally, the service has struggled to expand its subscriber base.
While the challenges facing Apple TV+ do not seem to be causing significant concern for the tech giant—since streaming services are not central to its business model—it appears that its era of unlimited spending is coming to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ remains the last major streaming platform without an advertising tier, a situation likely to change following the appointment of Joseph Cady, a former NBCUniversal ad executive, earlier this year.