Apple is reportedly aware that it has been overspending on television shows and movies that many viewers may not recognize or have seen. The company is now considering a new strategy for its streaming service, Apple TV+, after investing an impressive $20 billion in original content, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The duo has indicated a desire for the streaming service to shake off its image as the industry’s highest spender.
This spending spree has included significant investments such as $250 million for the miniseries “Masters of Air,” which received a lukewarm reception upon release this year. Furthermore, Apple has allocated over $500 million for films from notable directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive expenditure, Apple TV+ commands only a 0.2% share of TV viewership in the United States, accumulating fewer views in a month than Netflix does in just 24 hours. Additionally, the platform has faced challenges in growing its subscriber base.
While Apple does not seem overly concerned about the performance of its streaming service—given that streaming is not a central focus of its business—the era of unchecked spending appears to be coming to an end. This shift is evidenced by its hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change following the announcement of the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.