Apple is aware that it has been spending excessively on television shows and movies that are largely unfamiliar to viewers. According to a report by Bloomberg, the company is considering a new strategy for its streaming service, Apple TV+, after reportedly spending around $20 billion on original content.
Apple executive Eddy Cue has been engaging in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about controlling expenses. The studio heads are said to be indicating a desire for the service to move away from its reputation as the largest spender in the industry.
The company has made significant investments, including $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain traction. Additionally, it has allocated over $500 million for films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ holds only 0.2% of television viewership in the United States, receiving fewer views in a month than what Netflix accumulates in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple’s streaming service issues have not posed a major concern for the technology giant—given that streaming is not central to its primary business—it appears that the era of unrestricted spending is coming to an end. The company has already indicated a shift in its approach by being more hesitant to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming platform without an ad-supported tier, but this is expected to change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.