Apple is reportedly acknowledging that its spending on original TV shows and movies has been excessive, particularly on projects that have gone largely unnoticed by audiences.
The company is now considering a new strategy for its streaming service, Apple TV+, following significant investments totaling around $20 billion in original content, as revealed by Bloomberg.
According to the report, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht, focusing on reducing budgets. The pair has indicated that the service aims to move away from its image as the sector’s top spender.
Apple has invested substantial amounts in productions, including $250 million for the underperforming miniseries “Masters of Air,” which debuted this year. In total, more than $500 million has been allocated to films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty expenditures, Apple TV+ holds just 0.2% of television viewership in the U.S., having fewer monthly views than Netflix receives in a single day. The service has also faced challenges in growing its subscriber base.
While Apple has not appeared overly concerned about the struggles of Apple TV+, as streaming is not a central part of its business model, the era of unlimited spending may be approaching its conclusion. This is reflected in the company’s hesitation to renew shows for a third season, according to Bloomberg’s findings.
Apple TV+ is currently the last major streaming platform without an advertising tier, a situation poised to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.