Apple recognizes that it is overspending on television shows and movies that many viewers may not be familiar with.
The company is reportedly seeking a new strategy for Apple TV+ after investing around $20 billion into original content, as reported by Bloomberg.
According to the outlet, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets more effectively. The studio chiefs have also indicated that the streaming service aims to move away from its image as the top spender in the industry.
Apple has made significant financial commitments for various projects, including a staggering $250 million for the miniseries “Masters of Air,” which was released this year but did not achieve commercial success.
Furthermore, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, according to Bloomberg.
Despite these massive expenditures, Apple TV+ only holds a 0.2% share of television viewership in the United States, trailing behind Netflix, which garners more views in a single day than Apple TV+ does in an entire month. The service has also faced challenges in attracting new subscribers.
Although the issues surrounding Apple TV+ do not appear to alarm the tech giant, as streaming is not its principal focus, it seems the era of unlimited spending may be coming to an end. This shift is already reflected in its cautious stance on renewing shows for third seasons, as indicated by Bloomberg’s findings.
Notably, Apple TV+ is the only major streaming service that does not offer an ad-supported tier. However, changes are likely on the horizon, especially after the company brought onboard Joseph Cady, a former ad executive from NBCUniversal, earlier this year.