Apple is recognizing that it may be overspending on original TV shows and movies that many people are unfamiliar with. The company is reportedly considering a new strategy for its streaming service, Apple TV+, after investing around $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. Van Amburg and Erlicht have indicated that the streaming service aims to move away from its image as the largest spender in the industry.
The company has invested significant amounts of money on high-profile projects, such as $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain much traction. Apple TV+ has also spent over $500 million on films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these heavy expenditures, Apple TV+ holds a mere 0.2% of the US television viewership market, generating fewer views in a month than what Netflix receives in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple has not shown significant concern over the performance of Apple TV+, as streaming is not central to its business model, it appears the company may be shifting away from its previously unrestricted spending habits. This change is reflected in its hesitance to renew shows for additional seasons, according to Bloomberg.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier. However, this could soon change, as the company recently recruited Joseph Cady, an advertising executive from NBCUniversal.