Apple is aware that it is overspending on television shows and movies that many viewers may not recognize or have even heard of. The company is reportedly reevaluating its strategy for Apple TV+ after investing a staggering $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been engaging with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, to discuss tighter budget controls. The studio leaders have indicated to associates that the platform aims to move away from its image as the largest spender in the industry.
The company has invested significant sums, including $250 million for the miniseries “Masters of Air,” which debuted this year but received a lukewarm reception. Furthermore, Apple has spent over $500 million on films featuring acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial financial outlay, Apple TV+ commands a mere 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles do not seem to be a top concern for the tech company—given that streaming is not its primary business—signs point to a shift in its previously unlimited spending approach. This is evidenced by its hesitance to renew certain shows for a third season, according to Bloomberg insights.
Notably, Apple TV+ is the last major streaming service without an advertising tier. However, this could change soon following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.