Apple is aware that it has been spending excessively on original TV shows and movies, many of which are unfamiliar to audiences. The company is reportedly considering a new strategy for Apple TV+, having invested an enormous $20 billion in content, as reported by Bloomberg.
According to the report, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about scaling back production budgets. They aim to move away from the label of being the largest spender in the industry.
Apple’s spending has included substantial amounts for individual projects, such as the $250 million allocated for the miniseries “Masters of Air,” which did not achieve significant viewership upon its release this year. Additionally, the company has invested more than $500 million in films directed by well-known filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this aggressive spending, Apple TV+ holds just 0.2% of the total TV viewership in the United States, garnering fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not alarmed the company, as streaming is not a central focus of its business model, the era of unlimited spending may be coming to an end. Signs of this shift include the company’s hesitation to renew shows for third seasons, based on data from Bloomberg.
Notably, Apple TV+ is the only major streaming service currently without an ad-supported tier, a situation that may change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.