Apple is aware that it is overspending on television shows and movies that many viewers are unfamiliar with. The company is currently reevaluating its strategy for Apple TV+ after investing approximately $20 billion in original content, as reported by Bloomberg.
Apple executive Eddy Cue has been engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht about trimming budgets. Both Van Amburg and Erlicht have reportedly indicated a desire for the service to move away from its image as the biggest spender in the industry.
The tech giant has made substantial investments in content, including a staggering $250 million for the miniseries “Masters of Air,” which launched this year with minimal impact. Additionally, Apple has allocated over $500 million for films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the extensive financial outlay, Apple TV+ commands just 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not caused significant concern for the tech giant, given that streaming isn’t a core component of its business, the era of unrestricted spending appears to be coming to an end. This shift has already become evident as the company has been hesitant to renew shows for third seasons, according to Bloomberg’s findings.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, a situation that might change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.