Apple is recognizing that it has been spending excessively on TV shows and movies that many viewers are unfamiliar with.
The company is reportedly considering a new strategy for Apple TV+ after investing a staggering $20 billion in original content, according to Bloomberg. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about managing budgets more effectively. These executives have indicated that the platform aims to change its image of being the industry’s largest spender.
Apple has invested significant amounts in various productions, such as $250 million on the miniseries “Masters of Air,” which launched this year but received minimal engagement. Additionally, the company has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable investment, Apple TV+ holds only 0.2% of television viewership in the U.S., attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in growing its subscriber base.
Although streaming is not a central focus for Apple, the company seems to be moving toward a more cautious spending strategy, evidenced by its hesitance to renew shows for third seasons, according to Bloomberg. Notably, Apple TV+ is the only major streaming platform that does not offer an ad-supported tier, but this might soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.