Apple recognizes that it has been overspending on TV shows and movies that many viewers may not even be familiar with.
The company is reportedly considering a new strategy for its Apple TV+ service after investing an astonishing $20 billion in original content, as revealed by Bloomberg. Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about curbing production budgets. They have been conveying to others that the platform aims to move away from its image as the biggest spender in the industry.
Apple has made significant financial commitments for various programs, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to generate much interest. Furthermore, the company has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its vast expenditures, Apple TV+ captures only 0.2% of TV viewership in the US, with its total views falling short of those generated by Netflix in just a single day. The service is also facing challenges in attracting new subscribers.
While Apple TV+’s difficulties have not raised major concerns within the tech giant—given that streaming is not a primary facet of its business—the era of unrestricted spending appears to be coming to an end. This is evident in the company’s hesitance to renew shows for third seasons, according to Bloomberg’s findings.
Moreover, Apple TV+ is currently the only major streaming service that does not offer an ad-supported tier, a situation that may soon change, especially after the company recently recruited ad executive Joseph Cady from NBCUniversal.