Apple is recognizing that it has been investing excessively in television shows and movies that many viewers may not be familiar with.
According to reports, the company is considering a new strategy for its streaming service, Apple TV+, after spending an astonishing $20 billion on original content. Apple executive Eddy Cue has been having discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The duo has reportedly communicated a desire for the service to shed its image as the highest spender in the industry.
Apple has invested significant amounts in high-profile projects, such as $250 million for the miniseries “Masters of Air,” which garnered little audience interest upon its release this year. Additionally, the company has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ holds only a 0.2% share of television viewership in the U.S., and its monthly views are less than what Netflix receives in a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles do not appear to be a major concern for the tech giant, as streaming is not a primary focus of its business, the era of unlimited spending seems to be coming to an end. This shift is already evident in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertisement-supported tier, though this may change after the company onboarded Joseph Cady, an advertising executive formerly with NBCUniversal, earlier this year.